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Nope not a myth because I actually did it.

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OK, I'll bite.

I realize that anyone can make a sell order (with a high price) for their shares.

But please explain how you know that such a sell order prevents your broker from loaning out your shares to short sellers (which is the main point)?

If you read my previous post carefully, you can see that Etrade's policy for loaning out shares (for short selling) has nothing to do with whether you have a sell order (with a high price) or not.