Last week I put in a GTC Sell order for LINE @ $50. a share and just to be ABSOLUTELY sure that that would do the trick, I called my broker(TD) and ran them thru every possible sceneriio to be without any doubt that there was no possible way that my 1000 shares could be borrowed for SHORT SELLING....No problem. So if your believe in Linn as I do.......LOCK THEM UP and dont let those Bast***s use them against us.....Protect Yourself!
Sentiment: Strong Buy
Get it in writing that your shares cannot be borrowed. I don't think an order does anything. I called my brokers and found I had to move from a 'margin' account to a 'cash' account to stop my shares from being loaned. I asked for confirmation, and called again today when it didn't come.
There is a bright side to this. If you move your shares so they can not be loaned, you may (likely) get a generous offer of 10% or more interest ON TOP OF DIVIDEND. If you leave your shares in a margin account your broker makes all the money, and you take the risk they don't get returned (which goes to mediation).
Not necessary to be in a cash account. Simply do not carry a margin balance and they are not allowed to loan your shares.
Correct that GTC order does nothing - it's an urban legend of investing, often repeated but with no basis in fact.
Maybe $30,000 is "Chump Change" to you, Hot Shot, but to most of us normal Americans it is a lot of money. Why anyone would badmouth someone for voicing their opinion on a Message Board is beyond credibility. Does that make you feel good? To me and most normal people, it only makes you look pathetic.
Sentiment: Strong Buy
linn is owned mostly by retail investors, big reason why short raid is on. It is easy to scare out small investors. Best thing we can do as small investors is band together, 1000 shares at a time, and stop the shorts from "borrowing" our shares and taking us down. Call your broker and do whatever it takes. A few days ago someone shorted 2 million shares around 32.2. That to me is the crical level. above that the "smart money" bleeds. Ask yourself why is this media circus happening? Someone is trying to make a bunch of money by scaring us and the berry stock holders. I saw it happen last year with fgp. Look at that chart please! Stock went from 20 to 14 and back to 20. Smalls got slaughtered. Do not let it happen here. Leon Cooperman really helped us today. He basically bit*hed slapped that punk from hedgeeye and stock rallied. He owns 200 million worth. His money is where his mouth is. Hang in with Leon
Short sellers of this magnitude have to scower to find shares and clump them together from various houses to place their trades. LINE is not a Eaton or 3M with TONS of shares available to borrow. It's the basics on this one.
Your broker can only lend shares held in your margin account. Fidelity advises that a GTC order would not stop a loan of the shares. They have 2 days to cover if the shares were sold and they could in that time recall the shares from the short seller. LINE is an MLP and Fidelity has a policy of not lending MLPs unless specifically authorized by the owner. A little known reason for this is that a loan of the shares might trigger a sale by the owner with the resulting tax consequences. The tax laws provide that a loan of a security is not a sale. However, an MLP is not included in that definition of security thereby leaving open the possibility a sale could result from the loan.
Not only can they only loan shares in a margin account, that account must also have a current margin balance. If you have a margin account with no current margin balance they are not allowed to loan your shares. The rest of your post is the same as my understanding - I believe Etrade may have the same policy as Fidelity as I have never had MLP units loaned out although many times have had trust units loaned.
except it's not true.
If you have a margin account, read your brokerage agreement.
Focus on the part about hypothecation.
So long as you have a margin balance your shares can be loaned - putting a GTC does nothing.
In practice however I have often had my units of royalty trusts borrowed by shorts, but never once have any of my MLP units been loaned (thank goodness). Whether the brokerages tend to avoid loaning partnership units, I'm not sure however I can say it doesn't happen often.
Funny stuff. If you bought shares in a margin account, doesn't matter what price you set it for "Good to Sell", your broker can still use your shares to loan them out for shorts. Only non-margined accounts will be dis-allowed for borrowing out. This lock up your shares is too much dis-information.
Remember, the shares in your margin accounts are not really yours to begin within - you are borrowing most of their money to buy shares you cannot afford to pay whole. So you don't dictate what you do with those shares, the broker does.