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Strategies & Market Trends : Value Investing

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To: Elroy who wrote (62415)	8/29/2019 3:12:15 PM
From: E_K_S	of 78742

After the 2008/2009 crash, I converted 95% of my equities to a 'cash' account. I opened a separate account for margin so I could write covered calls. I get emails from my broker time to time if I want to lend 'certain' shares of stock where they will pay me interest. Typically these are shares w/ (1) low float, (2) people want to sell short and have no shares and/or (3) speculative micr-cap huge movers. Got a request on RKDA a recent company I own shares in but VERY "volitile". The issue I had with having my shares held in a margin account is any 3rd party that might be on the other end of using those shares (remember you hypothicate them to your Broker) could 'blow-up' and/or sell your shares and can not buy them back so you only have the word from your Broker (and the counter parties) you will be made whole. It would/could take time to sort everything out and you have no equity (access to those funds) in the mean time. If you have shares your broker wants, they will get in touch w/ you. FWIW, I still found it interesting that in this new digital currency paradigm. BitCoin must have some value if people/firms will pay you 8% interest to borrow it. But you are not assured you will ever get it back (so new never tested that). EKS

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