Removing shares from shorting
I have read on some other forums that people are calling their brokers and isolating their shares. This is supposed to block the brokerage from utilizing these shares for shorting purposes. Now I don't know if this is true, but I will be calling my brokerage tomorrow to find out if this is so. If anyone knows about this please respond. Thnx
Stop Shorts From Hammering Your SIRI
Had heard that keeping GTC sell orders set would keep shorts from borrowing my shares. This is not true. Brokers still loan your shares for shorting. Here's what I found out: If you have a cash account you can request that your entire portfolio be restricted from share borrowing. You must call and request this. If you do not request it, assume that your broker is "lending" your shares for shorting.
If you have a margin account, you can typically have one or two positions isolated from the rest of your portfolio to prevent your broker from lending those shares for shorting. The rest of your porfolio will still be available to your broker for shorting.
I requested that my SIRI shares and one other stock position be isolated from the rest of my portfolio. I do not want my SIRI shares to be borrowed for shorting. I thought that I had prevented this by keeping my stocks for sale, but as I stated this does not do it. AFAIK, calling your broker is the only way to stop the borrowing and shorting of your Shares.
When your order is completed, you will see that SIRI will be placed in a separate box on your account web page from your other holdings.
They Already Have Your Permission
When you signed your brokerage agreement, you agreed to allow your broker to borrow or lend to others your shares for shorting. Wasn't that nice of them? Even though you are unaware of it, you have already given them your consent to short your shares! I know you will call your broker tomorrow, right John?