Replies to post #2820 on Investor Help (NO Ihub questions)

[fung_derf]

OK, here's the skinny. You are supposed to be able to open a cash account where your shares are not lent out, vs. having a margin account. When you open an account you have the option.
However, the truth is, the brokerage will still use the shares if need be, so that's pretty much moot.
Yes, if you want to hold the certs in kind, you can certainly do that, however, it makes them less liquid and you'll pay a fee to get them delivered. So, to the bottom line, the whole claim of protecting your shares from your brokerage is a spoof. It is a rumor started by those wishing to convince penny stock traders why their stock price is falling.
Just read the below from the SEC.


http://www.sec.gov/spotlight/keyregshoissues.htm