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Non-Tech : Invest / LTD

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To: SJS who wrote (8924)6/12/1999 2:16:00 PM
From: drsvelte  Read Replies (1) of 14427
 
"Typically, the IPO stock will not become marginable until 30 days after the IPO starts trading. Only then can you buy more on margin, or, short it the stock in the open market.

Steve, I used to think this was true as well. But I now believe there is no regulation, SEC or otherwise, that prohibits shorting. Also I've seen some references to IPOs becoming marginable before 30 days. I think the problem with shorting is getting shares to "borrow" as usually the float is small and most of the shares are held in "cash" accounts and thus not subject to borrowing. I think!
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