Globalstar Memorial Day Massacre Message Board

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Technology Stocks : Globalstar Memorial Day Massacre

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To: Mama Bear who wrote (179)	5/13/2000 9:53:00 PM
From: dday	Read Replies (1) of 543

Re Question #4 and cash accounts. Only securities held in a margin account can be lent by broker. Total securities lent from any one account must not exceed 140% of debit balance in that account. I.E. I have $200,000 market value with $100,000 equity and $100,000 debit (loan)------- Broker can lend $140,000 of any stock in my margin account. So, if stock is fully paid and I have no debit--- then no loan. If all my stock is in type 1-----------then no loan permitted. What some brokers do is ask the customer for permission to lend. They offer compensation for that purpose to the customer who has the stock they wish to lend. Each broker must report short position in each security on a monthly basis and that is when you see the published figures. NYSE is around the middle of each month and the NASDAQ is around the 3rd week of each month. The real abuse is on the BB and pinks. This figures do not have to be reported, hence, there can and are often major cases of 'phantom shorts' created in many cases for the express purpose of manipulating the stock price.

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