TheGlobe.com Inc (TGLO)

[NorthPeak22]

Yes, they can use those shares to short bc shares owned digitally are legal property of the broker, not the account holder. Essentially, the shares we see in our accounts are a sort of IOU from our broker. In order to legally transfer ownership of a stock from the broker to you, you would have to call your broker and order a physical stock certificate. Only once you have the actual certificate do those shares actually belong to you and become unshortable. A broker can do with your shares whatever they please as long as they are the legal custodial owners of the shares.