[short question... VOTES?!]
"If the float is 2 million and all of them are borrowed and sold short, the buyers again have 2 million shares that can be borrowed and sold short. There is no 'limit' to the potential short interest, or for that matter, the number of shares that investors 'own'."
So, when it comes to proxy time, who gets to vote, and how much? Do the shorts vote -1? There used to be a million shares, a million votes, owned by guy #1. They were lent to guy #2, who sold short to guy #3. Now the company sends a proxy for a million votes to both guys 1 and 3, or what? They are both long a million (on the record date for voting), and #2 is short a million. The company "has issued one million shares" and the float is twice that, I guess.
Though this is a contrived example, all stocks have short positions; who gets to vote at the meeting?
Bruce Tiemann |
