Shorts - general info, page-743

Hi Silverchair, just trying to understand a bit better. When you say fake shares are you meaning something different from a standard shorting scenario in which someone borrows shares from a separate third party with the intent to sell into what they predict is a falling market and buy back later to return at a lower price. The short seller in the usual scenario is paying interest to the third party until they close out and is likely subject to potential margin calls. I can see where the volume loaned by the third party would in this case only be a small percentage of their holdings but they can't legitimately do anything with those shares whilst still 'held' by the shorter.

In your scenario for Cuv do you believe it maybe a somewhat different situation? I can imagine where the lender and shorter are essentially the same entity things could get dodgy quickly. Cheers for your insights.