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?
Pull the shorts off the shorts
Join Date: Aug 2008
Posts: 2
Thumbs up The shorts write crap like this to....
Yep shorts post this crap all over the net in all the forums regardless of the stock to benefit their short positions and then when all the uninformed chickens sell out it plays into their covering somewhere down the road. Do not sell out of SIRI because that along with isolating your shares or having them physically mailed to you prevents them from their ultimate goal and we all know what that really is. SIRI is a very strong buy in my opinion and we should see at least a double in 6 to 12 months so be vigilant.
More On The Attempt To Block Share Lending
It's a bit complicated and inconvenient to do (isolate shares of beaten down stocks like SIRI and DEIX from one's portfolio). Brokers discourage it. It serves the brokers' interest to keep all stocks available for lending for shorting. The banking analogy given by surfer000 provides a rudimentary example of how the system is supposed to work. A lot of naked shorting is occurring and brokers are participating in a shell game - keeping up appearances - maintaining the illusion - that there are sufficient numbers of shares of all stocks available for borrowing for shorting at all times.
(Sidebar: My broker said that SIRI can't be shorted in a Scottrade account b/c it is under $5.00. I then asked, what about other Investment Houses and Hedge Funds - can't they and aren't they shorting SIRI right now? My broker gave this answer - "I don't know what other firms are doing - they make their own rules". )
Will it make any difference if some retail investors are now isolating their SIRI shares from shorting? From the retail holder's point of view, does it really matter?
Perhaps what the brokers are worried about is something akin to a run on banks. If every retail holder did it, would brokers then be caught with their pants down? With an anemic SEC in charge would it matter?