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Posted On: 05/13/2025 11:40:09 AM
Post# of 153148
To limit opportunities for shorts to use your CYDY shares for manipulation, they need to be in a cash account. The fine print of the margin agreement allows most brokers to loan shares held in the margin account to shorts. If you want or need to keep a margin account you can simply open a cash account and have your CYDY shares transferred to the cash account and avoid them being loaned to shorts.
From sunray3's previous post:
Can Brokers Lend Shares from a Cash Account?
➡️ By default: No.
If you're in a standard cash account and you haven’t agreed to anything else, your broker cannot lend out your shares. That’s because:
You're not using margin
You're holding fully paid securities
Brokers can’t “hypothecate” your shares without explicit permission
BUT...
➡️ If you opt into a Fully Paid Lending Program (FPLP): Yes.
Many brokers now offer these programs even to cash account holders, where:
You voluntarily allow them to loan your fully paid shares
They pay you a portion of the interest they earn from borrowers
You retain ownership, but lose voting rights and immediate recall
Examples of brokers offering this:
Fidelity's “Fully Paid Lending Program”
E*TRADE's “Fully Paid Lending Income Program”
Charles Schwab's “Securities Lending Fully Paid Program”
Interactive Brokers' “Stock Yield Enhancement Program”
So in those cases, yes, a cash account can be a source of loaned shares — but only with your consent.
From sunray3's previous post:
Can Brokers Lend Shares from a Cash Account?
➡️ By default: No.
If you're in a standard cash account and you haven’t agreed to anything else, your broker cannot lend out your shares. That’s because:
You're not using margin
You're holding fully paid securities
Brokers can’t “hypothecate” your shares without explicit permission
BUT...
➡️ If you opt into a Fully Paid Lending Program (FPLP): Yes.
Many brokers now offer these programs even to cash account holders, where:
You voluntarily allow them to loan your fully paid shares
They pay you a portion of the interest they earn from borrowers
You retain ownership, but lose voting rights and immediate recall
Examples of brokers offering this:
Fidelity's “Fully Paid Lending Program”
E*TRADE's “Fully Paid Lending Income Program”
Charles Schwab's “Securities Lending Fully Paid Program”
Interactive Brokers' “Stock Yield Enhancement Program”
So in those cases, yes, a cash account can be a source of loaned shares — but only with your consent.


Please do your own due diligence. All my posts and comments are not to be considered investment advice.
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