Replies to post #78934 on Lightwave Logic Inc (LWLG)

[frobinso]

I have heard that they do not borrow from cash only accounts, so that would likely do the trick.

On TDA, I have also at certain times put up all my shares of $25 stock in 50k share increments at $250k/shr. Have no idea if it keeps anyone from borroiwng my shares. I receive an error message and cancellation ,but if I persist several times they allow it to go through.

I never want to limit my profit, and when a company I invest in is evaluating strategic alternatives to include a potential sale of the company I would rather err on the high side, then to go into a stock halt with all my shares up at a limit amount that does not exceed the sales price/outstanding sharecount.

I have never been contacted by TDA about borrowing shares of any security.

[sqrl]

Luther,

If you have a margin account you have given Schwab the right to loan your shares out to anyone. Cash accounts require your permission. Most of these clearing firms have figured out ways to obscure their accounting to regulators to lump all shares into 1 bucket and therefore bypass the rules not allowing "cash" account shares to be loaned out without the customers permission. The only way to avoid having your shares loaned out is to remove margin from your account. It may not stop them but it will provide a roadblock

[Lewrock]

Luther, Schwab does not have to ask your permission any more. However, you would see the shares transferred into your lending account. I have a different viewpoint on lending shares. If I don’t somebody else will so why should I forgo $80 per day! In addition, once shares are sold short that investor joins our team in that his next move is a buy order. You also know the moment the short position is closed because you shares are returned to you. That information could be helpful trading knowing that the selling pressure has turned into buying pressure by that group of investors.

I report the interest rate changes to inform this board if the demand to borrow shares is increasing or decreasing.

[nsomniyak]

There is another level to this. Schwab has a "Securities Fully Paid Lending" program (or something like that) under which they lend out your shares and pay you for that. You can opt in or out at an account level, but not security by security. They email you when they borrow or return, and when the interest rate on the loaned shares changes.

If you want to sell you can at any time. Similarly, if I want to write a covered call in my IRA on a loaned stock, they will return it.

I have made a good bit of money loaning out securities this way, though off the top of my heard I don't recall if they ever borrowed LWLG. I think the that they did at one point.

Interest rates can be pretty juicy - I have notes that they were paying ME 54 % to borrow DTEA at one point (and, obviously charging the borrower more). More often the interest rate is in the 8-15% range.