Theory?
"Posted by: bobbybdb Date: Sunday, August 10, 2008 7:37:57 PM
In reply to: Brad S who wrote msg# 37150 Post # of 37199
brads, I was just showing that most, if not all have their entire portfolio is on margin, can we borrow funds on those accounts NO!!, can the brokers borrow ALL our shares that are listed as margin, YES !!! That was my point.
I was just showing that most, if not all have their entire portfolio is on margin, can we borrow funds on those accounts NO!!, can the brokers borrow ALL our shares that are listed as margin, YES !!! That was my point.
Trying to show how the brokers are able to double the float and gain as hidden liquidity, by borrowing our shares out of our margin status and load our accounts up with IOU'S.
We are all required to pay cash, however when listed on margin, brokers are authorized to borrow our shares even though he dose not have a "VESTED" interest to do so. As on a normal margin account, where the client can actually go on margin and borrow brokers funds, causing the broker to then have a VESTED interest, thereby the broker can borrow those margin shares.
We cannot do that when the PPS is under $4.00, so without a VESTED interest brokers borrow or shares, generate markers, and put our shares out to other clients to sell short or whatever.
Offshore hedge funds gobble them up for short selling, when they run out they electronically generate more. "