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Re: jan4 post# 46992

Wednesday, 10/09/2013 9:01:45 AM

Wednesday, October 09, 2013 9:01:45 AM

Post# of 163719
very likely, Jan4. Another fact is stocks priced below a certain limit like $4 are not marginable with most brokerage houses. So all SIAF shares you buy must be paid from available cash balance in a margin account. But as long as you maintain a positive account cash balance, the broker theoretically cannot lend out shares of any of your stocks, even if some were bought on margin. Not sure how many brokers abide by that though, especially when lending rates are temptingly high, sometimes as much as 100% pa. What some brokers do, is they call you and offer a tiny piece of that rate for the permission to lend out your shares even when you have a cash account or a margin account with positive cash balance.

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