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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by spazzmanon Jun 13, 2011 8:55pm
348 Views
Post# 18710083

RE: RE: RE: Question on shorting

RE: RE: RE: Question on shortingThe brokerage house that executed your short order pays the dividend on your behave via your account. i.e the shorter is liable for the dividend.  Some brokerage houses require a margin account for shorting plus 1½ times the dollar value of the stock shorted in marginal equity (cash, stocks and/or bonds) before the trade is executed.  If the stock shorted goes up before the shorter can buy the underline security back then you would get a margin call to maintain the 1½ times margin requirement.  This is why shorting is more dangerous, your potential losses can be far more then your margin investment.   The brokerage house can if deemed necessary sell, without your consent, any assets needed to cover such transactions by days end.   


As for running a scam, well the brokerage house is ultimately responsible, so therefore they would not allow you to withdrawal any assets from your account(s) if you tried to scram.   
Bullboard Posts