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Re: puppydotcom post# 28883

Thursday, 02/17/2011 2:21:46 PM

Thursday, February 17, 2011 2:21:46 PM

Post# of 34422
puppydot, The system works like this,. If there are no certs to cover shorts, then brokers need to BUY them from the company as the stock being revoked they can not buy from the market, as being revoked it is not trading.

However the company is still viable and has not filed BK, therefor brokers are still locked into a fiduciary responsibility to their clients on their IOU's

The brokers Need money to buy certs to fill demands from clients for their certs,(direct from the company) so the DTCC lends the brokers the funds, the brokers in turn go to the shorting clients with a FED/Margin call,if they do not respond, they will sell shares held as collateral to in turn pay the DTCC back the borrowed funds..

Nothing hard about it.................