RE:RE:RE:RE:RE:RE:RE:Short Selling = Share Printing = Manipulation = more waysAgain, from what I've read, the loan desk at the brokerage keeps track of shares available to loan. Once loaned, they are removed from that number and can't be loaned again. If the float is too low they will borrow from another firm - therefore in practical terms there are always enough available. But since the owner still counts shares the liquidity is definitely increased by regulatory agreement.
Still we can grumble about the practice, particularly naked shorting, which is fantasy land incarnate. I also don't buy the argument that the improvement to liquidity is beneficial to the market. Certainly beneficial to brokers and savvy day traders but what has happened to PXT as a result of the Arauca hiccup is a direct result of the practice.