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Technology Stocks : 3DFX
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To: Joe C. who wrote (12085)4/27/1999 9:48:00 PM
From: Patrick Grinsell  Read Replies (4) of 16960
 
Short holder get no vote and no dividends...

Period. They don't own the stock, but are borrowing it and have already sold their "borrow ownership" to someone else. Only the original owner gets to vote the shares.

But what about the second person receiving the shares that were shorted? Seems to me like two people now have equal rights to the same stock certificates and it would be near to impossible to who has the voting power. Under this theory the total supply of stock outstanding is flexible and actually expands as the stock is heavily shorted.

For example: Jimmy owns 10 shares in his account. Now Montgomery comes along and borrows those 10 shares to short them to Sue. Now Sue owns the same 10 shares, but both Jimmy and Sue should have all the rights of a regular shareholder right? Weird thing is we now have an extra 10 shares hanging around that were never issued from treasury stock. Interesting...and if this little theory holds up is actually better for the vote than worse. If we really need 2/3 we'll need every vote we can get.

Looks like somebody sold a block of about a quarter million shares according to the Fool board. That's like trying to pass a gallstone the size of a watermelon. It's bound to be a little painful even in the best of times. It might be somebody who's is being conservative about the merger vote going through. The 2/3 thing surprised the hell out me. I really hope the shareholders are paying attention or we could be at 5 by monday.

Pat
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