s72> the lender will give a call to the borrower to cover the position only if your share has been sold. if not they are going to play this game over and over.
nope.
shares that are up for sale CANNOT concurrently be legally lent out to short on a Canadian stock exchange. every licensed broker knows this violates UMIR and a host of other regulations (no time to look them all up, some reading is below).
no above-board dealer in Canada would risk their job or their market participant status, and the screwballs would be caught by audit soon enough.
in the US, the SEC adopted Regulation SHO to address short selling.
GLAL,
R.
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http://www.torys.com/Publications/Documents/Publication%20PDFs/AR2007-43T.pdf
http://www.benefitscanada.com/news/new-rules-for-short-sales-26137
http://www.canadiansecuritieslaw.com/2009/04/articles/securities-distribution-tradin/short-sales-in-canada-current-regulations-and-recent-changes/
http://www.osc.gov.on.ca/en/Marketplaces_srr-iiroc_20120302_nca-umir-failed-trades.htm
