RE: RE: Question for Wavector @wavector...From what you say then, any investor who buys on margin and play options on their shares on margin are actually putting themselves in an disadvantageous position. They are undoing themselves are they not? This is especially true if their intention is to be long on BB. Would it not be better for them to borrow the money from another bank (as opposed to using a margin account at the same bank in which they transact their shares), and buy the shares outright at the transacting bank so that the shares are in Cash Account. Buying in Cash Account would remove available shares for their banks to lend for shorting, thus reducing the present high turnover which allows traders and shorters to play havoc with long interests in BB.
Separately, my concern is what is there to prevent the investor's bank from lending out his shares for shorting even when the shares are indeed bought in Cash Account. How can the unwary retail investor be protected from the bank's wanton abuse of their responsibility ? I know that IIROC does not allow banks to lend shares from their client's Cash Account. But in the present high volume of BB's daily share transactions, I am not ruling out such foul play going on behind the scene. I would like your insight on this matter as you are one who is both knowledgeable and credible. Thanks a lot.