Jitendra Prasad's Comments on Short selling...

Naveen it is a good write up on short selling as it gives an overview of what short selling is. Talking about Covered and Naked Short sales (what i have read) the Covered short sales means the seller has the possession of the shares what he intend to sell(or the short sell is backed up the shares held) while in case of naked short sell he don't have the possession of the shares he have to arrange for it (or the short sale is not backed up by the shares held). Its not about the intention of the seller because anyhow the delivery has to be made to the buyer either by incurring loss by the seller or by Auction.