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Re: cjstocksup post# 10945

Monday, 09/10/2012 12:05:28 AM

Monday, September 10, 2012 12:05:28 AM

Post# of 71458
Any shareholders here that put WGAS shares up for sale to keep them from being "shorted" are participating in an urban legend. It's an old wives tale that is absolutely false.

If you have a Margin Account, you can borrow funds to buy more shares than your funding would normally allow. By the same token, in a Margin Account the brokerage can borrow against your shares, EVEN IF THEY ARE UP FOR SALE. Most brokerages won't borrow against your shares unless you are actually using your margin.

TD Ameritrade recently sent out documentation stating that they would notify their customers if their shares were being shorted. Their policy is typically to only short against those utilizing their margin.

If you want to absolutely lock up shares and make them unavailable for shorting against, you need a Cash Account. You can't borrow Brokerage margin money and conversely, No shares can be borrowed from a Cash Account to short against. The negative to a Cash Account is after a trade has been completed, the funds from the trade aren't usable for three trading days or until the trade has cleared.



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