Street Name Review

Posted at 5:53 PM (CST) by & filed under General Editorial.

Dear CIGAs,

Here is a short review for you before the weekend.

Street Name
JANUARY 20, 2012
by: Jim Sinclair, jsmineset.com

“Investors should avoid margin accounts and instruct their broker dealer to not register stock certificates in street name.”

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99.9% of brokerage account investors have no idea what is being done to them when their stock certificates are registered in “Street Name”. It allows their broker to lend their shares to short sellers, driving down the price of your investment. Additionally, this method allows the broker to “re-hypothecate” your assets and borrow money against your shares so they can speculate in the derivatives market.

“These hidden risks are the seeds of tomorrow’s ultimate collapse of broker dealers which could dissipate the assets of customer accounts as experienced in the MF Global fiasco.”