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Re: velociraptor post# 664

Wednesday, 09/18/2002 6:51:37 PM

Wednesday, September 18, 2002 6:51:37 PM

Post# of 702
The person whose shares were borrowed does not have voting rights until his shares have been returned. That's the only right they lose.

& "Since the lender always holds cash collateral for
the entire market value of his stock, he has in essence turned
his certificate into cash while still retaining ownership. For as
long as the stock remains on loan, the cash can be invested in
some interest bearing instrument, thus bringing in extra income
to the lender and providing the incentive to loan stock to a
short seller. "

The shares you borrowed may not have been borrowed from a person's account. They may have come from inventory held by brokers (beyond what their customers own), or borrowed from other brokers' inventory, or borrowed from institutional investors.

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