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I don't know how one could determine whether you're buying 'real' shares, borrowed shares or imaginary 'naked' shares.
Maybe it isn't even practically possible to ban naked shorts, or there are unforeseen disadvantages to doing so.
There's an advantage (in my eyes): it increases volatility, which brings larger opportunities for traders like me to buy low and sell high, matching the number of shares with the inverse of the stock so the total value remains constant.
It would be helpful to know exactly how many shares are shorted at all times though.
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2011 Honda Insight + HID, LEDs, tiny PV panel, extra brake pad return springs, neutral wheel alignment, 44/42 PSI (air), PHEV light (inop), tightened wheel nut.
  lifetime FE over 0.2 Gigameter or 0.13 Megamile.
For confirmation go to people just like you.
For education go to people unlike yourself.
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