You are wrong about margin accounts loaning out naked shorts!
Naked short shares are not "loaned out"!!!!
They are simply created out of thin air ... hence the term Naked shorts or "air shares". You can not loan out something that you do not even have.
:-)
Re:
"Maybe you researched too much, I am not wrong on this subject.
If you were correct I could own any GE just by creating air shares and taking control as the major holder.
Only the buyer of the shorted share, the holder of record, controls the voting rights. The owner of the margin account which loaned out the shares will have agreed in advance to relinquish voting rights to Naked Short Shares while they are shorted. Victims of Naked Shorting attacks sometimes report that more votes were cast than the number of shares issued by the company, in which case there is "more work" to be done. A vote was never taken in our case so it is only speculation that NSS (Air Shares) would have voted.
The "more work" may well be a dividend to try and expose the Air Shares.
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