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16/06/17

12:46

Post #: 25316055
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Originally posted by Darkstone ↑

And don't forget the margin lenders. You borrow money to buy stocks, but you don't own the stock the broker with whom you did the loan notionally does through the margin lending agreement. So the broker can lend your stocks to a shorter to bet against you and force you to meet the margin call as the stock falls. So they make money from both sides and cover their risk. In fact margin investing is almost designed to induce the behaviour because it is in the interests of the lender to force your margin call to reduce their risk.

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I think you're confused. The financial institution gives you a line for credit, or margin loan, to buy stocks if you wish to use their funds.

You definitely own the stock and get the divis, offerings etc...

GXY Price at posting: $1.67 Sentiment: Buy Disclosure: Held
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