Question from an investor on keeping shares from shorters Hi, I generally answer questions via the bullboards. Some brokerage and other market guys that pay stockhouse to advertise or other "affiliation" can get your email address if you "interact" with them so it's safer for me to respond here. Here is the question followed by the answer.
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Date: 5/11/2016 8:27:34 PM
Subject: Question on sell order over 100
Hi, Protrading,
This is ________ and I have some question regarding the sell order info.
question:
1. so if I place them into the sell order over 100, are you saying the shorters would have to return them back? like I buy through RBC, and those guys on margin options would have to return it back to me? or to RBC?
Many thanks, Looking forward for Friday.
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The answer is a little complex. There are several types of brokerages that have in house traders. RBC, CIBC and all other banks have them. So within these banks the traders can borrow shares from clients to short sell. Should not be legal but it is. No other industry allows you to "borrow without permission". I can bet you that if most investors had the options to allow inhouse traders to borrow shares, they would say "NO". If I walk in to a Walmart and "borrow" something to return it when it's on sale, buy it cheaper when it's one sale to then return the good at the high price, they would put you in jail.
On these filthy markets run by these filthy brokerages and overseen by a set of very ineffective set of overworked and overwhelmed regulators, short selling is the #1 thing investors have to become savvy on. It's what will kill the markets and a massive crash in the future. You'll see a massive peak then BOOM! If you still have cash invested anywhere, you'll be sorry. We are far from that point of "euphoria" and then crash. The markets aren't there, especially now.
Now, to answer the question. If the shares are shorted internally within the brokerage, correct shares are returned and the brokerage has to find them trough someone else. If you only have 100 shares it might not make a big difference but if everyone recalls their shares it will.
The big shorters are from managed accounts. Rich guys who hire speciality brokerages to manage their accounts. These guys likely don't know or care about these things but might if they bought at $90 for example and look at their portfolio and call their brokers to ask. Hopefully the brokers won't be idiots and recommend they sell at $30 if if they do, I buy at or near lows! ;-) If they are wiser, they will review the accounts, average down and then tell their brokers to put the whole lot for sale at $100. That removes all those shares from the shorter's available pool.
If everyone does this, you might get something called "failed to deliver" on a cross listed CXR/CXRX stock, if that happens, it means the shorters were not able to return the shares! The discount brokerage idiots at the help desks (like RBC if that is where you trade) won't be able to explain this to you so you need to ask them to investigate. That means the shorters got caught shorting your shares and were not able to return them in time.
If everyone here does this, it creates pressure on the short seller. Just a little irritant for the shorties and since they irritate the hell out of legit shareholders, we might as well irritate the hell out of them!
PS They HATE MY GUTS! So much, they follow me around to hound me with their clown nerf guns that tickle!!!! ;-) LOL