I saw this on reddit then wanted to confirm it. Someone said if you have a non-margin account, people can't borrow your shares (eg not as many people can short the stock). But if you have a margin account, then people can borrow your shares. Like I thought margin account meant it was possible for the account holder to borrow shares, but your shares could be borrowed regardless.
...... And can you inform your broker that you do not want to lend out your shares, regardless of account type?
With the exception of some DOL regulated accounts any account agreement that allows re-hypothication can lend stock. Why would you care ? Brokerage failure ? The first thing SIPC does is recover the stocks.
The concept in the reddit thread was basically saying that this will prevent people from borrowing your shares and keep price from going down. If people can't short they an reduce the price.
If you don't think shorting can drive prices down... then Jesse Livermore had his manipulative trades all wrong, In fact, all his books are wrong... and so were the exchanges.
Could you explain your post? I always thought that shorting stock did put downward pressure on stocks. Elon Musk blamed all the short sellers on the poor performance of TSLA a couple of years ago.