Who in their right mind lends their shares. Ask your broker.
I did and now I wait for their reply but it won't be long before I send these questions to the SEC and my congressional rep.
"I hope this finds its way to the very top at ETrade
My original inquiry has gone unanswered for over a month. Perhaps Etrade is incapable of answering and further incapable of communicating its inability to do so in a reply.
I now have a few more questions for my broker.
Is the price of my shares as well as those of the rest of ETrade's clients' determined by the supply and demand for those shares in the open market? Does Etrade lend my shares or those of any of Etrade's clients? In doing so does Etrade increase the supply of those shares offered? Tell me then how Etrade's activities are not detrimental to Etrade's clients?
I hope to see an answer soon."
Does any of this answer " In doing so does Etrade increase the supply of those shares offered?"
The non-response from ETrade:
"The price of shares are not determined by E*Trade.
Quotes are completely determined by the market, and we display what the market is doing to the customers.
The shares in you portfolio are priced straight from those quotes we receive from the market.
Like many other brokerage firms, we do allow our customers to have margin accounts.
To use margin our clients can borrow cash or securities.
We can allow one E*Trade customer to borrow shares from another to short sell,
but the person that is long any security is due their position at any time, whether it be to sell or move"
The SEC and your congressman have way bigger fish to fry and couldn't care less about your #$%$-ant issue. Do you *really* think your message is going to get any traction whatsoever? You come across as a smallfry trader crying "no fair" and they won't waste a second on reading or acting on your complaint. Grow up.
BTW, I'm long 20K shares of AFFY (at 0.95), and I actually have the first message ever posted to this board when AFFY went public several years ago. But here I'm reminded why I usually avoid stocks like what AFFY has become. Disheartening to see the level of investor it now attracts.
Reread my post. There's no mention of affy or any junk penny stock.
The question to the brokerage industry is do they act against their clients best interests.
The answer is obvious.
Here's a question for the investing public.
Given the choice between a broker who includes a clause that allows him to undermine your investments and a broker who does not, which would you rather do business with?
Look back to 2008 when regulators were forced to admit the destructive potential of shorting and actually banned it.