This whole problem starts with the brokers.
They take our CASH, but treat our BCIT shares as if they were theirs.
First by putting our shares in their street name,they in turn loan those shares out to whoever, that alone causes a 100% increase on every share we purchase, those markers sitting in our accounts, and the shares that are on loan.
We are treated as margin accounts, when in fact we should be cash, this procedure is only for one purpose, to increase broker revenues without paying interest, our cash is in their pockets, yet our shares, are in their street name.
That is only the beginning of the NSS scenario, from there it takes on a life of it's own.
The DTCC is nothing more than a very lucrative clearing house, that also stores street name shares in their depository, the brokers give the instructions as what is to be done with their shares(in street name).Most are sold short!
If we were treated as a true cash account shares would not be put in street name they would be carried in our individual names.
If they were in our names the unregistered or phantom shares could never be issued, because each transaction would need to be cleared without borrowing.
What you would loose in that,you would need to wait 3 days for clearing between selling and buying, unless you carried enough cash to complete the transaction.
So the brokers gift to us for taking our cash, and our shares, is to allow us to trade upon the sale of shares without additional cash, or waiting three days.You have to wonder is it worth it?
AI
