--------- The shares are sold and the proceeds are credited to your account. Sooner or later, you must "close" the short by buying back the same number of shares (called covering) and returning them to your broker.----------
LOL! How about that Wolfee..... shorts buy and sell just like longs do.... except in reverse order. LOL!
Since I was long RTK, my shares were available for shorts to borrow. There are several ways to prevent shorts from having access to your shares for borrowing. I never deny shorts access to my RTK shares .... since I don't worry about shorts ..... and is probably one of many reasons why I make money in the stock market and you lose you adz! LOL!
------------ 3. Where do the shares come from?
The shares used for short selling are supplied from various sources. Many times they are supplied internally, borrowed from long positions held in other Schwab clients' margin accounts. In the margin agreement, as collateral for existing margin debit balances, clients agree to lend positions held in their margin accounts to Schwab for the purpose of loaning to other market participants for short selling. Typically, Schwab can borrow stock worth up to 140% of the debit balance amount from a margin account. Schwab cannot borrow securities that are paid for in full and settled. ------------