1/2 the problem is many investors don't even know
Post# of 32627
(Total Views: 446)
Posted On: 07/30/2021 12:23:14 PM
1/2 the problem is many investors don't even know what type of account they have so by putting a sell order, they know for sure
The other 1/2 is the different 'rules'
The rules are different for each broker. Just ask Robinhood customers about 'rules'
In theory a broker cannot lend out your shares without your permission, but does anyone read the fine print on what they click on anymore?
"At this time, Fully Paid Lending is only available for brokerage cash accounts and IRAs with a minimum net account value of $25,000. Margin accounts , E*TRADE Line of Credit accounts, and other non-cash accounts are not eligible for the program ."
https://us.etrade.com/what-we-offer/our-accou...id-lending
Now if you setup a margin account, can they loan out your shares by default of what you agreed to? I don't know as I don't have one.
I can tell you one advantage of having a sell order. The broker would be a jackass to call you to ask to loan out your shares if you did have a sell order in place.
Oh, something else...
"A few important considerations to keep in mind
Securities we borrow from you may be used to facilitate short selling which could contribute to lowering the price of the securities on loan . "
The other 1/2 is the different 'rules'
The rules are different for each broker. Just ask Robinhood customers about 'rules'
In theory a broker cannot lend out your shares without your permission, but does anyone read the fine print on what they click on anymore?
"At this time, Fully Paid Lending is only available for brokerage cash accounts and IRAs with a minimum net account value of $25,000. Margin accounts , E*TRADE Line of Credit accounts, and other non-cash accounts are not eligible for the program ."
https://us.etrade.com/what-we-offer/our-accou...id-lending
Now if you setup a margin account, can they loan out your shares by default of what you agreed to? I don't know as I don't have one.
I can tell you one advantage of having a sell order. The broker would be a jackass to call you to ask to loan out your shares if you did have a sell order in place.
Oh, something else...
"A few important considerations to keep in mind
Securities we borrow from you may be used to facilitate short selling which could contribute to lowering the price of the securities on loan . "
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