shares in non-margin accounts can't be borrowed?

I

IronFist

I saw this on reddit then wanted to confirm it.

Someone said if you have a non-margin account, people can't borrow your shares (eg not as many people can short the stock).

But if you have a margin account, then people can borrow your shares.

Like I thought margin account meant it was possible for the account holder to borrow shares, but your shares could be borrowed regardless.
 
With the exception of some DOL regulated accounts any account agreement that allows re-hypothication can lend stock. Why would you care ? Brokerage failure ? The first thing SIPC does is recover the stocks.
 
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ajacobson said:
With the exception of some DOL regulated accounts any account agreement that allows re-hypothetication can lend stock. Why would you care ? Brokerage failure ? The first thing SIPC does is recover the stocks.
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The concept in the reddit thread was basically saying that this will prevent people from borrowing your shares and keep price from going down. If people can't short they an reduce the price.
 
IronFist said:
The concept in the reddit thread was basically saying that this will prevent people from borrowing your shares and keep price from going down. If people can't short they an reduce the price.
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I'm baffled by the fact that people still think that shorting drives price down
 
The_Krakenite said:
If you don't think shorting can drive prices down... then Jesse Livermore had his manipulative trades all wrong, In fact, all his books are wrong... and so were the exchanges.
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If you understood his book, you would understand my post
 
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