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To: pater tenebrarum who wrote (32726)10/31/2000 4:55:07 PM
From: IceShark  Read Replies (1) | Respond to of 436258
 
That is generally correct. Big holders will lend them out, though, on more or less direct deals. If they pull the plug on a large slug and call them back, watch out.



To: pater tenebrarum who wrote (32726)10/31/2000 4:55:26 PM
From: Oblomov  Read Replies (2) | Respond to of 436258
 
Heinz, you are correct. Stocks held in cash accounts are not lendable for shorting. All margin account agreements contain a "hypothecation/rehypothecation clause", which essentially states that the securities in the account may be borrowed against, and they may be lent or commingled with other securities at the broker's discretion. The credit is still on your account, of course.