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23.5¢ cudeco limited

Ann: Results of Meeting, page-78

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shadowboxer1

2,755 Posts.

03/02/15

19:30

Post #: 14691749
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Originally posted by maxw ↑

Hi hottuna,

I don't short as I need to use a Margin Loan facility to accumulate CDU whenever I can.

However, this shorting intrigues me.

You say for the majority of stocks the borrow fee is tiny.

It also surprises me that a normal share holder would lend out his/her shares when there is very little financial reward in it.

I can envisage only 2 reasons for shorting:

1. The broker lends out clients shares unbeknown to them. The broker doesn't have to pay them a fee. He can collect one from the borrower of the shares he lends out.

2. Large traders borrow shares for the sole purpose to push down the share price of a company.

It seems to me this is immoral and manipulative ,and therefore illegal. The Regulator could be to blame if this type of activity is allowed to go on undetected.

cheers,

Max

cheers,

Max

It seems to me these are

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Max

By having a margin facility your broker doesn't need your permission to loan them to short sellers so in fact some of those 9 odd million shares shorted could be yours which is ironic to say the least

CDU Price at posting: $1.41 Sentiment: Buy Disclosure: Held
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