Replies to post #7448 on China MediaExpress Holdings, Inc. (fka CCME)

[abh3vt]

Thanks for posting this info (in bold and underlined to emphasize again) on shares held in cash accounts vs margin. I have posted this before, but there are always those who want to believe in other fables....

If you hold your shares in a Margin account they can be loaned out to shorts. Period. Even if there is no margin balance on your account and even if your customer service rep tells you that they are not loaned out.

The only way you can be sure your shares are not loaned is to transfer them to a cash account and leave stick instructions with your broker not to loan them out.


This is the correct information. On-line brokers don't like this type of account setup ("cash") because they make a lot of money on loaning out shares in margin-enabled accounts to shorts. The drawback for investors in cash accounts is that they can't trade options or use leverage to enhance performance. My advice: set up smaller, separate accounts for that purpose.