To minimize short or naked short selling...
Is it correct, as a broker advised, that the best way is to request a paper stock certificate?
In essence it's like having a checking account that doesn't pay interest but the bank still uses the money to loan. (I know the rules are different but it is a basic illustration)
As was explained to me that no matter what "Ask" price you set, as long as there are shares in an account, they can be loaned for shorting purposes without compensation. In effect using your shares against you as described in your post.
The other choice is to advise your broker that you do not want your shares to be loaned. I have my suspicions on this because I spoke with someone who requested this and their broker was at first reluctant and said it could not be done. They finally complied but with only a verbal confirmation and they will not provide anything in writing.
What are your thoughts on this?
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