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Gold/Mining/Energy : SOUTHERNERA (t.SUF)
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To: VAUGHN who wrote (7093)5/23/2003 8:59:45 PM
From: Letmebe Frank  Read Replies (1) of 7235
 
Topic: Brokers selling your shares short.

Hello guys - Over on Stockhouse there has been interesting discussion about this topic.

This topic of brokers selling your shares short was discussed on the SH Souternera thread. Here's the latest post (is it The Fix, or Fixer?), and the one that tells it like it is. Previous posters had good comments as well. Many of us put high sell orders in for SUF which forces them to cover the short, or so we thought. Truth is, the price went up, and I think our effort may have augmented the recent rise.

Here's a post and the link.

stockhouse.com;

"Let's clear this record up on shorting!
The Canadian Securities Authorities don't give a rats behind whether there are shares held by the brokerage houses.

Each broker guarantees each sale/buy order. So...the brokerage houses set their own guidelines as to what they will allow their clients to do.

The brokerage house has to answer to the Securities Authorities - not the client.

It's the broker who has to be concerned that the client has the available resources to "chase the market" if a breakout occurs.

The brokerage house is NOT required to have any shares available to "borrow".

Obviously, when there are less shares of any stock - available to the marketplace - the broker will set a lower % which they let their client's short.

This is just good business and common sense.

For example: The client has $300,000 in cash in his account - but that same client is very wealthy - his broker won't care if he wants to short big time. The client's personal covenant for the funds (if he has to chase the market past his cash position) is all the brokerage house cares about.

Feel free to check with any of the Securities Commissions."
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