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Strategies & Market Trends : Americans 4 "No Own - No Sell" -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (188)	10/2/2001 10:18:57 AM
From: Ga Bard	Respond to of 455

WHOA TOUCHE' That is exactly we are out to bring to light on the legal side of the petition. Loopholes that fleece the rightful owners. Great post ... P2bAAAT & DSAS

To: dvdw© who wrote (188)	10/2/2001 11:36:08 AM
From: Moominoid	Read Replies (1) \| Respond to of 455

Almost all mutual funds can't short. They certainly can't short stock for the company's benefit. Earning money on lending stock is exactly like selling covered call options. Earn some extra money when you think the stock will go down without actually shorting.

To: dvdw© who wrote (188)	10/2/2001 11:41:35 AM
From: BWAC	Respond to of 455

<J6P buys Mutual fund with the idea the fund will make them money on the long side. Then the MF begins leasing their holdings to sell side, and what happens? The stocks loaned begin going down. The MF has effectively went against their own customers interests. > What I've seen in some customers mutual fund accounts is the fund "lending" the shares out for some sort of secured loan to bring cash in? I can't get straight answers from the fund about what they are doing and have never seen this sort of thing in prior years. (First Union Evergreen family) They had some sort of asterick notation on some of the funds stock holdings. Buried deep in the back of the report was the explanation that these "securities had been loaned out in exchange for xxxx shares of some nonlisted nevr heard of before can't find anything about money market fund". Thus increasing the cash holding % of the fund. A brief scan of the securities on loan leads to some of the most heavily shorted stocks in the market. What it LOOKS like to me is the fund loaned the shares to a short sell operation in turn for interest in a money market fund. Almost as if, the short sell operation agreed to guarantee/pay a money market rate of return, if they had access to the shares. The mutual fund flatly refuses to explain the transaction beyond the published report notation.