RE:RE:RE:RE:RE:RE:RE:RE:ShortingDo we ever actually own shares or not?
From what I understand, requesting a paper certificate will mocve the shares out of street name and have them certified as yours, but I also believe that it doesn;t stop the practice in Canada. In the USA, I was under the impression that the law dictated that you cannot "naked short"(possibly being proven otherwise right now ala gamestop etc), but in Canada, I believe there is no such rule.
In the end, by far the best defense against share price vibration brought on by shorting and "outside the business" factors, is simply to invest in companies that are strong, solid, have good fundamentals, and a bright future. All of those shorted shares must be rebought, and we are back where we started. If the company runs a good balance sheet and provides good communication and visibility on it's direction, and that direction is onwards and upwards, none of it really matters.
Cheers!
davewho wrote: You could be right Aarman4. I never thought of it from that point of view. Do we ever actually own shares outright or not? Splitting hairs maybe. But when I called they seemed pretty specific that they look at the account and if it has say 50k$ in margin owing they will lend out 50k$ worth of shares. Any shares in the account. You may have used margin to buy company X but they just see it as money owing. That was about 10 years ago so could be changed by now. Anyway at that point I stopped using margin and switched to my LOC if wanted to borrow money to buy shares. Short sellers and banks are bed fellows that we can be sure of.