You can't by the corporate act of 1940 sell nothing. You can sell 3% above the value stated by the collateral and sell short by any amount set out in the corporate act of 1940
Now as was mentioned you can prepay for many items and sell the equity in these items of prepayment but that does not mean the value will hold as mentioned or if you like to say was the money well spent.
But again if the outstanding share accounts can go up and they can reverse the share there must be revenue coming in to allow this to take place.
Buying inventory be it equity or goods is another example of prepaid goods if inventory goes down along with administration and sales as well income tax and outstanding shares and cash falls as well along with debt being staying steddy or climbing then that would be of a great concern.