Had a lengthy call to Scottrade this am. was transfered to 4 different people. First representative said cash account and margin account shares with debit can be loaned for shorting.The only way to stop your shares from being loaned was by getting your certs. Was next transfered to a compliance officer. He said that cash accounts could not be loaned, but could not answer whether pink sheet stocks could legally be shorted, thus, transfered to a third person, a margin person. (which only in house people personel can talk to...OOOPPPSSSS) he had no answers and thus was trasnfered to a fourth person, another compliance person. He stated cash account shares can not be loaned and margin accounts are not loaned shares in the PPS of the company is below $5.00, thus can not short pink stocks. It states "may not be loaned." It does not state will not be loaned, or are not loaned. Nice loophole there.
I also asked how in a trading day the volume can be 7Mill one minute, and then be 3 Mill the next. He stated perhaps illegal trading could be taking place, and put PHGI on the radar.
Call your brokers...ask specific questions. Get in writing that your shares may not be loaned whether in street name or not. It is your right. Be prepared to get different answers by different people in the company. If you are not satisfied with the answers you get, ask to be transfered to someone else. Document your conversation and with whom you spoke with. Might come in handy down the line.
Dudette
Anything I say is only my opinion.
Always do your own DD before investing.
