Shares in a Margin Account? Beware!
Post# of 872
(Total Views: 305)
Posted On: 06/01/2017 12:03:15 PM
Shares in a Margin Account? Beware!
Just got off the phone with Fidelity as info in the past occasionally they would call me to see if I wanted to loan my shares out so that they could be shorted. I called to see if any of my shares were loaned out without my knowledge because they do not have permission from me. They informed me that the only shares they can loan out without an individual knowing it are from “Margin Accounts”. Any of you with shares in a margin account may in fact have you shares being lent out to shorts without your knowledge.
As info None of mine are being lent out, they must request it from me in writing.
Again this is only for folks that have their shares in a Margin Account.
Shares borrowed from someone’s “Margin Account” are Not Naked Shorts however this is where the shares that were Naked shorted are borrowed from to legitimately cover a Naked short. Remember any naked short must eventually cover. A ledgit short can ride out forever and just pay broker, unless the share price rises then they are Forced to cover.
I only had a minute.
Get them out of the Margin Accounts
Xster
Just got off the phone with Fidelity as info in the past occasionally they would call me to see if I wanted to loan my shares out so that they could be shorted. I called to see if any of my shares were loaned out without my knowledge because they do not have permission from me. They informed me that the only shares they can loan out without an individual knowing it are from “Margin Accounts”. Any of you with shares in a margin account may in fact have you shares being lent out to shorts without your knowledge.
As info None of mine are being lent out, they must request it from me in writing.
Again this is only for folks that have their shares in a Margin Account.
Shares borrowed from someone’s “Margin Account” are Not Naked Shorts however this is where the shares that were Naked shorted are borrowed from to legitimately cover a Naked short. Remember any naked short must eventually cover. A ledgit short can ride out forever and just pay broker, unless the share price rises then they are Forced to cover.
I only had a minute.
Get them out of the Margin Accounts
Xster
(1)
(0)