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Thursday, January 02, 2014 9:02:22 PM
If a company declares a stock dividend both the naked short seller and the short seller are on the hook to deliver those shares to the lender. This forces the short seller to "buy to cover" so they can return the shares to the lender.
http://seekingalpha.com/article/1645772-biolase-ceo-takes-dead-aim-at-naked-short-sellers-main-street-cheers
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