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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: B.K.Myers who wrote (30153)	2/22/2008 5:25:17 PM
From: Grommit	Read Replies (1) \| Respond to of 78751

ACAS. thanks for the link. I called schwab and got some more info. I was told that it is a myth that a broker can loan your shares to a short seller without your approval. That is -- unless you are on margin. They sent it to me overnight UPS and wanted me to return it via similar prepaid overnight delivery. I have x thousand shares and maybe that's why they singled me out. They also will gross up my payment by 30% to cover higher taxes for any portion of ACAS dividends which are qualified. And my 2% is computed daily based on the closing share price (paid monthly). i.e if I get $100 dividend at 15% tax rate, I end up with $85. So they pay me $130.77 and assume I am in 35% tax rate and net the same $85. fair enough. I am signed up. It will start as early as next week. cool.