Hard to Borrow status at Schwab

[Libtardius Maximus]

I haven't seen this since I don't know when, a year maybe?

Shorts are back, what is their angle here?

Anyone?

[kommonsents]

Perhaps one or more of the "players" are holding the pps down. Lots to gain from that tactic....

[trans]

Perhaps one or more of the "players" are holding the pps down. Lots to gain from that tactic....

Thank you......

[Getitrt2]

Could the shorts be aiming for the $45 acquisition price on closing? What happens to shorts at that point? I would think borrowed shares would have to be returned for delivery to owners for owners to get the XOM stock. Could the shorts cover by buying XOM? Will broker/dealers force them to cover BEFORE closing?

[katytrader]

Could the shorts be aiming for the $45 acquisition price on closing? What happens to shorts at that point? I would think borrowed shares would have to be returned for delivery to owners for owners to get the XOM stock. Could the shorts cover by buying XOM? Will broker/dealers force them to cover BEFORE closing?

Could there be an explanation other than new shorting of IOC?   If the voting rights go with the borrower, it could be that share lenders want their shares returned so they can vote, thus making shares hard to borrow as Schwab tries to restore its pool of available shares for borrowing.  If there is no regulated standard with respect to voting rights of borrowed shares, then I would suppose that the issue would be governed by the broker's program. I have an old brochure from Schwab which indicates that title passes to Schwab along with voting rights.

[Libtardius Maximus]

still hard to borrow at Schwab and it started on Monday of this week after a year long hiatus. This makes no sense to me at all.

[Relker]

Is it possible that someone foresees a new vote for the XOM bid and wants to cast extra votes with borrowed shares?

[ArtM72]

Is it possible that someone foresees a new vote for the XOM bid and wants to cast extra votes with borrowed shares?

I think votes used to be "borrowed" that way in Chicago with tavern transactions. Depending on the deal you get from various brokers borrowing shares might be a great new way to put your thumb on the scale.

[AU74]

Not clear if you can borrow shares without buying them or immediately selling them short

http://www.investopedia.com/ask/answers/...rights.asp

[kommonsents]

Could be that shareholders are not willing to "loan" their shares for fear of their voting rights being corrupted or that they don't want to lose control of them during this critical period of bidding for all of IOC.