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Steve1978

02/25/21 1:59 PM

#102132 RE: newbe2investing #102125

Anyone who own shares without a active sell order the broker may decide to loan the shares out to shorts to make money... Yes brokers make money on stocks you own. They loan them out to shorts for % fee...

So what we try to do is lock up shares with a sell order of several bucks to prevent those shares being loaned out to shorts. As example, i have all my tptw shares for sell at $5 / share. Now they are not able to be loaned out

PamelaR

02/25/21 4:44 PM

#102148 RE: newbe2investing #102125

newbe here.....what do you mean protect myself?? are you saying someone can take away my shares that i have??



They can't actually take your shares away from you, but they can use your shares to drive the price down. Short sellers borrow our shares from the brokers who hold them, without our knowledge or permission, and actually sell them while the price is up. Then, they manipulate the market in many ways to drive the price down (as per the article). Once they get the price down they buy shares at the lower price and pay back the shares they borrowed. Their profit is the difference between what the price was when they borrowed/sold the shares and what it was when they bought shares back.

This happens over and over. But, if you put a sell order on your shares, they cannot borrow them. If enough people lock down their shares with sell orders, we might be able to hold down the market manipulation.

Many of us believe short selling should be illegal. No one should be able to sell something they do not own. But, market manipulation will keep happening as long as it is legal.