News Focus
News Focus
icon url

SevenTenEleven

06/11/10 7:49 AM

#125471 RE: TomSawyer #125466

FFGO - What would make it fair is if they woould allow retail customers the same shorting rights on a stock such as FFGO as they do the Canadians and the MM's. This would even the playing filed. This would also create more pressure for short squeezes.
icon url

bobbybdb

06/11/10 11:21 AM

#125502 RE: TomSawyer #125466

NeilPeart, I don't believe that most are complaining about legal shorts, as they are what helps the market liquidly, what most are concerned about are the illegal shorts that are generated by brokers and MM's for clients or self indulgence.

Or the bottom line of every share purchase through on line brokers that take our CASH, put a electronic promissory note in our accounts, and take our shares and deposit them in his broker name without having any VESTED INTEREST (margin) in those shares, then in turn lending those shares out to clients i.e. offshore hedge funds etc.

Illustration would be if someone sold a car, took the money as well as any fees for registration then never delivered the car, but instead issued a promissory note, in turn used the car as he pleased, and would grant a cash refund, only if the car was resold, then he could transfer his promissory note to someone else thereby maintaining possession of the car.

Some how SEC needs to stop that practice, and allow shareholders to have full control of their shares that were paid for in cash, that all shares go automatically into shareholder name without paying $75.00 to be taken out of street name and registered in shareholder name.

Unless you have either called for and received certs, or requested that shares be in your name (paid the broker fee $75.00) then your shares are in BROKER STREET NAME and out of your control.


To add, that, each broker holding maybe thousands of clients in his street name is only counted as ONE shareholder as far as the company/TA is concerned. The only connection to actual shareholders is the required broker obo/nobo list of note holders that he generated for their shares.