'Also, it is against the law for market makers to borrow shares I have placed a sell order for."
There is no law that states that. Maybe give me a link to it. I've read it many times on penny boards. You won't because you can't because it isn't a law.
If your shares are lent out it and you receive a dividend it is nto a dividend for tax purposes. It can't be. If so the tax man would have more dividend claims than actually existed. You receive interest income.
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