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Alias Born 05/24/2012

Re: Nomo123 post# 12877

Thursday, 08/01/2013 12:08:24 AM

Thursday, August 01, 2013 12:08:24 AM

Post# of 30990
Several reasons to not take the "stock loan" money ---------

A Couple:

Continued short selling depresses the stock price below its natural supply & demand level. Thus, should Star need additional funds a depressed stock price makes it more difficult for the Co. to raise additional funds.

And

Check me on this, but I do think there is a risk to the owner of the shares, if they are loaned out, that there is a chance that you the owner won't / can't get the shares back. How that is worked out by the brokerage house, I don't know, but it is my understanding that the brokerage houses will not guarantee that you get your shares back. Obviously, the owner would need to be compensated for the shares, but at what price is the question. Read the fine print on any brokerage agreement to get the details.

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