Posted On: 07/14/2014 1:05:56 PM
Post# of 30035
Re: SouthBreeze #1761
TD Ameritrade has told me that shares in a cash account cannot be loaned for shorting. Shares in a margin account can be loaned, unless the shareholder has requested they not be loaned. That practice may vary among different brokers, so it's always best to check with your broker and not depends on what's posted on a message board. With TDA, I've found the best and most accurate info comes from making a inquiry from within the account. Sometimes the people I've talked to on the phone give inaccurate info, but I've never gotten bad info from the internal inquiry.
I've received mixed info on whether a GTC sell order has any impact on the margin account holder's lock up on their shares being loaned. For myself the best defense is to have the shares in a cash account, or make the specific request for all the AMBS shares in a margin account not to be loaned. In TDA, AMBS shares are non-marginable. In any case, if the shares are held in a margin account one could easily open a cash account and transfer their AMBS shares to that account while leaving the margin account open for other investments.
Another problem with a GTC sell order is that some brokerages limit the sell price based on a multiple of the current share price. If the stock is trading at $0.10, a sell order at a price of $5 or $10 might not be accepted. Also, if the sell order is placed at a price, say $2, and something unexpectedly positive is announced that causes the share price to rocket upwards (buyout offer, major partnership with hundreds of millions in up-front money), your trade will likely execute at the $2 price even though the price proceeds well above that price. Given the potential this company holds, that's not a risk I'm willing to take. A cash account or specific instructions not to short seems the best option for me.
Interesting days and weeks ahead for shareholders. Sitting on a ton of shares here at 4.3 cents average price. And like Sol, I also have 112,000 shares, so we have that in common. LOL
Gerald and company gonna ROCK OUR WORLDS!!
I've received mixed info on whether a GTC sell order has any impact on the margin account holder's lock up on their shares being loaned. For myself the best defense is to have the shares in a cash account, or make the specific request for all the AMBS shares in a margin account not to be loaned. In TDA, AMBS shares are non-marginable. In any case, if the shares are held in a margin account one could easily open a cash account and transfer their AMBS shares to that account while leaving the margin account open for other investments.
Another problem with a GTC sell order is that some brokerages limit the sell price based on a multiple of the current share price. If the stock is trading at $0.10, a sell order at a price of $5 or $10 might not be accepted. Also, if the sell order is placed at a price, say $2, and something unexpectedly positive is announced that causes the share price to rocket upwards (buyout offer, major partnership with hundreds of millions in up-front money), your trade will likely execute at the $2 price even though the price proceeds well above that price. Given the potential this company holds, that's not a risk I'm willing to take. A cash account or specific instructions not to short seems the best option for me.
Interesting days and weeks ahead for shareholders. Sitting on a ton of shares here at 4.3 cents average price. And like Sol, I also have 112,000 shares, so we have that in common. LOL
Gerald and company gonna ROCK OUR WORLDS!!
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