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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: pater tenebrarum who wrote (32726)10/31/2000 4:55:26 PM
From: Oblomov  Read Replies (2) of 436258
 
Heinz, you are correct. Stocks held in cash accounts are not lendable for shorting. All margin account agreements contain a "hypothecation/rehypothecation clause", which essentially states that the securities in the account may be borrowed against, and they may be lent or commingled with other securities at the broker's discretion. The credit is still on your account, of course.
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