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Re: New directors/ Voting Rights: Why Short Selling Must Someday Be Bannedwweupper: Trying to control even a single seat on any board in this market is a fool's errand, IMO. Counting shares held is probably a waste of time. One must realize that there are more shares out there
than there are votes possible. There have been lawsuits filed and ajudicated where two individuals each owned 100% of the stated outstanding shares (and others owned even more)! Pity the poor judge! Brokerages (where almost all shares are being held), send out proxies and
then vote as the shareholders advise them to do. So long as the shares were not
borrowed to cover shorting activities, all is well. Of course, if your shares were loaned, the broker
merely borrows from some other NON-voting and unborrowed shares under his control, and you are free to vote
"your" shares. Same applies to the guy that bought your shares from the shorter.
S/he gets to vote too! But if too many want to vote in some hotly contested election—like say more than the total shares your
broker controls, and no other broker has any to lend to your broker then, guess
what? All your broker's votes are apportioned to each one wanting to vote as a
percentage of the total numnber your broker actually controls..That is how a
holding of 10,000 shares could end up at the ASM providing only, say, 7,864 votes, for example.
Just another slick way the SEC aids and abets the fraud inherent in Short
Selling that makes hedgefund moguls rich at your expense. In tight contested elections, each broker provides a block of shaved votes to the company at its meeting
and no shareholder is ever the wiser as to how many of his votes were stolen by
Short Selling shares you let your broker control by not taking delivery of
your certificates, a thing that then would deny you the borrowing power of your
holdings for purposes of margin playing (and thereby would prevent you from losing all your money in the Casino as quickly as otherwise is possible). Interesting things to contemplate. No? c |
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Msg # | Subject | Author | Recs | Date Posted |
468821 | Re: New directors/ casey, the dismissive | rynotheknife | 1 | 8/21/2014 6:55:12 PM |