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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (7869)	4/30/1998 11:57:00 AM
From: Gokhan Gezmisoglu	Respond to of 18691

Shares in a margin account are held in "Street" name, and the voting rights actually belong to the brokerage house. Read the fine print on the back of a proxy statement, you'll find this to be true. The common practice is to mail you a proxy form and to vote your shares according to your wishes. Voting in a company matter is one area of shorting that I am a little hazy on, it would seem on the face of it that there are 110 shares entitled to vote. I think this mainly takes care of itself, because there are enough folks who just don't care. I recently got a proxy form from a company that I held overnight. It just happened to make me a shareholder of record. I tossed the proxy because I really didn't care one way or the other. This allowed at least 1000 shares held short to even out. This simply can not be true. There can not be a situation where the matter "takes care of itself". What if everyone cares and you end up with 110 votes. I think when the stock is in the street name, the brokerage house gets a certain number of voting rights. Then they distribute it to shareholders who keep the stock in their margin account. It might be a random drawing if there are more shareholders than voting rights. (which means some of the shares were shorted.) Thanks for taking the time to answer my questions. Gokhan