Wednesday, June 12, 2024 6:14:20 PM
It's confusing, no doubt. I called my broker, he answered quickly and seemed well versed on the topic. Maybe he was wrong, I did run it through AI and got a similar answer. But I did not ask if the short seller actually sold the share to a buyer if the buyer would get the voting rights. So I don't know. It makes sense that you don't have voting rights if you lend out your shares, and it makes sense that the short seller would have the voting rights, but not if he sold the share and had not covered/returned the share. Once he covers, your voting rights would be restored.
From AI:
"If you lend your shares for short selling, you typically won't have voting rights while the shares are loaned out. The borrower, who is the short seller, becomes the temporary owner and has the voting rights. This is because the short seller is considered the registered holder of the shares on the record date, which is the date used to determine who is eligible to vote. Once you get your shares back from the borrower, you will regain voting rights."
From AI:
"If you lend your shares for short selling, you typically won't have voting rights while the shares are loaned out. The borrower, who is the short seller, becomes the temporary owner and has the voting rights. This is because the short seller is considered the registered holder of the shares on the record date, which is the date used to determine who is eligible to vote. Once you get your shares back from the borrower, you will regain voting rights."
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