IE: Broker (A) loans shares to broker (B) and broker (B) sells the shares short to retail customer (C). Neither broker (A) or (B) records shares/transaction anywhere other then in retail customer (c) account and the black books that they keep in their back pockets. How can that be found out, what has to happen to find that information out.
Not legal shorting but illegal shorting. Does the effected stock have to pay a cash dividend? Is there another way to catch the illegal shorts.