### Comment:
Obviously there are only 100 actual shares. If your broker lends out your shares you still have a long position and your broker will show shares in your account. 
  
 The point is that shorting increases the effective share supply.

### REPLY:
So those fictitious 40 extra shares that get sold by the shorter, to whom do they get sold to ?? The broker or ? 
  
 Also, what happens if the guys owning the shares on loan start to sell them? How can they sell something they technically dont 'have' ? Does the broker just pay them the salesprice and thus front the money ? 
  
 If thats the case, can't that compound to a serious outlay for the broker, and what happens if they go bankrupt because of this?

### END.