American Bio Medica Corp (ABMC)

[stocksbelow1]

Good morning ABMCers!! One thing that keeps popping up on this message board is that if you lock up your shares with a GTC sell order a ways above the market then shorts cannot use your shares. This is absolutely false for a margin account. When signing up for a margin account part of your terms of agreement is that the brokerage can and will loan your shares for shorts if they so desire. You may be able to stop this if you ask for a Loan Exempt Restriction. If your broker denies this then switch to cash account if you prefer. I've heard that some brokers have different terms and conditions so please check these. But my understanding this is covered by FINRA.

Check out FINRA RULE 4314-4330. This covers what brokerages are allowed to do regarding funds held on account for borrowing from a customer for another customer who wants to short.

If you have a cash account the brokerage cannot touch your shares for shorting under any circumstance. However, there is a school of thought that if a MM sees a GTC order well off the market price then they can continually sell and buy back maybe hundreds of times as long as they can see your GTC sell order.

So the best alternative (for cash accounts) that I have found is to NOT set any GTC orders, either S/L, or limit sells way above the market. This keeps MM's in the dark and thus not able to manipulate or hunt (see) your shares.

Anyway, that's my thoughts on what I have learned through the last 20 years or so.

GLTA.

$ABMC$