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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 457.82+1.3%Jan 23 4:00 PM EST

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To: 2MAR$ who wrote (77580)8/11/2011 3:29:37 PM
From: elmatador3 Recommendations  Read Replies (2) of 219713
 


There is something wrong with a system when every shareholder of a company is satisfied with holding those shares yet the stock price can still radically decline because non-shareholder traders decide they want to sell a bunch of shares they don’t own.

And where did the non-shareholders get the shares to sell?

They “borrowed” them from you because you happened to have a margin account at a brokerage firm.

That’s right, you did not give your permission to anyone to take your shares to bet against you, you did not get compensated for it, yet the shares were “loaned” from your account to a short seller because the “hypothecation agreement” that you signed is so broad it allows your brokerage to screw you without telling you.

Short Sale Abuses Killing Shareholders businessinsider.com
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