Parex Resources Inc T.PXT

How To Stop Short Sellers from Borrowing your Shares...

[JoeBravo1]

ol_griz you are right to an extent, that retail investors don't make much of a dent because most aren't buying and holding for the long term, or they buy shares on margin.

You can only stop your shares from being borrowed if you have a Cash account and not a Margin account, or you own your shares and have the Certificate in hand.

Here's an article from Seeking Alpha that better describes what retail investors can do:


How To Prevent Your Shares from Being Borrowed for Shorting


"There are two things you can do, the first is to certificate them but this is not obvious to everyone’s advantage but the alternative solution is simple. All you do is to phone your broker and put an order in saying that you wish to place your shares for sale at, for argument's sake, double today’s price. As they are 'on order' they cannot be lent out by your broker and in turn, you are reducing the amount of 'free shares' out there that can be used for shorting purposes. And don't forget to move your limit order up when the price starts to recover, then, that way your shares can't be shorted - not much but helps.

Although an individual personal investor will not normally have enough shares to halt a concerted shorting attack if a large number of holders did this it would reduce the overall amount of shares that they could get their hands on."