Lightwave Logic Inc (LWLG)

[Photonics_Guy]

TD Ameritrade policy on loaning shares out of clients' accounts

Pursuant to the Margin Agreement, when a client holds a debit balance in a margin account TD Ameritrade may lend the shares to other clients or broker dealers. We may also hypothecate, which means that we can pledge the shares as collateral for a loan at a bank. Only those TD Ameritrade customers with margin loans can have stocks and bonds in their account rehypothecated.

This is standard practice for brokerage firms. If a customer is not borrowing $ from TD Ameritrade (i.e. in a margin debit situation) a broker/dealer cannot rehypothecate any customer assets since they are fully paid for and owned outright by the customer and can't be rehypothecated. If a client is borrowing from TDA, they cannot make shares unavailable for loan.

My comments: Be careful with margin accounts. If you have a debit balance in a margin account, your brokerage can loan/hypothecate any of your shares without notification. Also, if you sell naked puts, that creates a debit situation in your margin account and - consequently - your shares are up for grabs.

PG