Lightwave Logic Inc (LWLG)

[Photonics_Guy]

More info re TD Ameritrade's policy of loaning shares

I received an expanded reply to my questions from TDA:

Q1. What is TDA's policy regarding loaning shares from client accounts to short sellers?
TDA Response: Our policy regarding loaning shares from client accounts to short sellers (rehypothecation) is when a client holds a debit balance in a margin account, TD Ameritrade may lend the shares to other clients or broker dealers or we may also hypothecate the shares.

Q2. Is the client informed beforehand if TDA allows shares from a client account are loaned for short position?
TDA Response: We would not notify you if your shares are being loaned out, it is agreed upon in the margin agreement that if you are holding a margin debit, TD Ameritrade may loan your shares. If you are not borrowing/do not have a margin debit, we will not loan your shares even if you have a margin account.

Q3. Does account status (margin v. non-margin) have any bearing on whether the client is informed of shares being loaned?
TDA Response: Ultimately no notification is sent to clients when shares are being loaned. Only margin accounts can have shares loaned though, non-margin accounts will never have shares loaned.

Please remember...if you have a short position in any equity or option, your account has a margin debit balance. And your shares are up for grabs (rehypothecation).

PG