I believe that if you enter a sell order on your shares then the brokerage is not able to legally lend them out. So if DWAC is trading at 56 for instance and you place a limit sell order GTC (good till cancelled) for $5,000/share (assuming the software will allow a price that high, they may have caught on and limit the price differential between current and sell price) then you have effectively taken your shares away from the short sellers. You may have to settle for a much lower sell price which if you aren't paying attention could get hit in the future because you forgot and didn't change the sell price higher. I'm only passing along what I've read on other boards.
Think about this example. You trade in bricks. Someone wants to buy some bricks. You do not have the exact bricks required in stock but you can get some very quickly. You tell the purchaser that he will have his bricks at the end of the week and you agree a price.
On Thursday, the price of the bricks to you falls so you buy the bricks at a reduced price but still qualify for the agreed price from your customer.
This is the basis of short selling and shows how you can make money even if the shares drop in price.
The only way to cripple this process is, as a believer in the value of bricks, to ensure that the price of bricks doesn't fall, by buying as many bricks as possible to create a shortage; such that those promising them cannot get some very quickly anymore. Then, those who made promises must (are forced to) buy your bricks at whatever price you (and all other brick HODLers) would like to charge - because they HAVE to have them.
You can request paper certificates which will prevent this but it's a hassle to later sell, because you have to send the paper back and you have to keep track of cost basis yourself. But this prevents lending.
I also thought that lending only was allowed on margin accounts so maybe disable margin.
Yeah, and people still have the audacity to come here and preach us that there is nothing fishy about whats happening with DWAC.
I believe that if you enter a sell order on your shares then the brokerage is not able to legally lend them out. So if DWAC is trading at 56 for instance and you place a limit sell order GTC (good till cancelled) for $5,000/share (assuming the software will allow a price that high, they may have caught on and limit the price differential between current and sell price) then you have effectively taken your shares away from the short sellers. You may have to settle for a much lower sell price which if you aren't paying attention could get hit in the future because you forgot and didn't change the sell price higher. I'm only passing along what I've read on other boards.
correct but it will not stop these criminal brokers from naked shorting
I must be dumb because I can not conceptualize how something not in one’s possession could be sold or lent?
Think about this example. You trade in bricks. Someone wants to buy some bricks. You do not have the exact bricks required in stock but you can get some very quickly. You tell the purchaser that he will have his bricks at the end of the week and you agree a price.
On Thursday, the price of the bricks to you falls so you buy the bricks at a reduced price but still qualify for the agreed price from your customer.
This is the basis of short selling and shows how you can make money even if the shares drop in price.
The only way to cripple this process is, as a believer in the value of bricks, to ensure that the price of bricks doesn't fall, by buying as many bricks as possible to create a shortage; such that those promising them cannot get some very quickly anymore. Then, those who made promises must (are forced to) buy your bricks at whatever price you (and all other brick HODLers) would like to charge - because they HAVE to have them.
This is indicator they are ready to short the life out of it
I know if you have fidelity, and you have a cash accounts, and you bought the shares with settled cash, they can't lend out those shares.
Doesn't matter, they are naked shorting it.
Yes they can and yes they do. Drs/dwac
No, no they can't. It's the rules.
Now do they? Probably, rules are for poor people.
Phun is in a similar boat. Both will crash and burn or continue to rise pending the shorting going on. What's going on and has gone on is criminal.
Had to look it up. For others here if you don't know what it means.
https://www.investopedia.com/terms/s/securitieslending.asp
So High GTC sale order good or bad for us? Sorry im new to all this
Buy and fucking HOLD
Just a formality. You are playing in a rigged casino that is known for not keeping their end of the deal concerning how you play. Play wisely.
You can request paper certificates which will prevent this but it's a hassle to later sell, because you have to send the paper back and you have to keep track of cost basis yourself. But this prevents lending.
I also thought that lending only was allowed on margin accounts so maybe disable margin.