CredIt SuisseSubstantial holder, page-23

There has been lots of Credit Swiss trading and shorting. They are over 200 M in shares that are held somewhat permanently. The list is way too long to go through and enter all buy and sells and all shorts and covers to know for sure. So from what I can see They are a very active trader that has been accumulating as well as trading and on the 4 th had accumulated over 200M shares making them a 5% holder. No shorts included

Shorts do not count yes you have a share but it is borrowed. Shorted shares cannot be voted. All rights including voting, dividends and anything else with the share stays with the owner that loaned you the stock. You must borrow stock from someone that owns it to sell short. In the US you borrow from broker. The broker has to have the stock. Either from direct ownership or if another customer puts the stock into a margin account Then the broker has the right to loan the customers stock. The broker keeps all the interest, it does not go to the owner. That is why some discount brokers only set up margin accounts.

Most US brokers will only put stocks over $2.00 to $10.00 (depending on in house rules) in a margin account that is why LYSDY and CF cannot be shorted in US. Some brokers did short it when it was over $2.00

Naked Shorts, selling a share without owning or borrowing it, are not allowed for most traders. Only market makers in the stock are allowed to do Naked shorts. Then only when there is a market imbalance and for a very brief period. All Naked shorts have to be reported to SEC.

At least that is how it all works in US.


Think about the broker in this set up. You put a stock in a marine account to secure a temporary cash loan or buy stock that you do not have money for. The Broker charges you interest usually a little above market rates on funds borrowed. Then someone wants to short the stock. Broker takes your stock and loans it to the shorter. He charges above market rate interest for the value of the stock. If they do not have cash in the account that is at least 20% of the value of the shorted stock (this protects broker if stock goes up) he will let them put some other stock in a margin account and charge you interest on the 20%. The money the broker receives from the stock never gets shown but never credited to your account so you cannot use it. Stock in a margin account but not borrowed against is not costing a thing. But the broker makes lots of money loaning it. If it is not in margin account they can not loan it. If you don't like sorters never leave stock in a margin account.