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Re: Zitroja Group post# 42529

Wednesday, 04/08/2015 2:27:10 PM

Wednesday, April 08, 2015 2:27:10 PM

Post# of 100699
Sorry to inform you that there is no such thing as locking your shares for shorts. ONLY IF YOU HAVE THE PAPER STOCKS in your possession. Because if you deal with a broker they have the stocks in street name. Please read this as I also used to think I was locking shares. False

Many investors don't realize this, but in nearly all cases, the shares of stock you buy through brokerages aren't technically held in your name -- they're held by the firm "in street name." (The reason? It massively simplifies the paperwork involved in buying and selling stocks, but never fear. In practice, you still own the assets you think you do.)

When a brokerage holds shares in street name, it can then turn around and lend them out to its other clients to sell them short. Of course, they're still your shares, and you can redeem them anytime.