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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (45784)	10/26/1999 1:07:00 AM
From: IJReilly	Respond to of 122087

Thanks for repeating that slowly, I tried to read it slowly so I would understand. Maybe you could have repeated it loudly too, that might have helped. Let me see if I have it straight-the purchaser of a stock that has been borrowed and sold short does not get voting rights, but the purchaser of stock sold from a long position does. How does one know if one has bought borrowed stock? Say I bought a 200 lot, that was actually filled in two pieces, one from a short seller, one not. I can now vote half my shares? Seems weird to me. I would imagine in many situations buyers would pay more for stock with voting rights, thus preferring to buy stock from a long seller over a short seller. You must admit it's different from the dividend situation-when I buy a stock, I know I'm getting the dividend. The way you describe it, I don't know if I'm getting voting rights or not. Any further insight is appreciated. IJ

To: LPS5 who wrote (45784)	10/26/1999 1:45:00 AM
From: IJReilly	Respond to of 122087

Be patient with me, I have a tricky one for you. Let's say, to be simple, there are 200 shares outstanding in a company, 100 shares held each by trader 1 and trader 4. Along comes trader 2, a short seller by nature, who borrows 100 shares from trader 1 and sells them to trader 3. Trader 1 retains the voting rights on those 100 shares. To cover his short position, trader 2 eventually buys 100 shares from trader 4. Now, traders 2 and 4 have no position, and traders 1 and 3 are each long 100, but trader 3's shares have no voting rights. Now the company, which used to have 200 voting shares, only has 100. What's the deal? Do trader 3's shares somehow get rights when the original short is covered? Seems like that would be hard to keep track of, since those shares could have changed hands countless times before that happens. Thanks again IJ