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Strategies & Market Trends : SHorting Stocks: Education/strategies/techniques

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To: Early Bird who wrote (56)	3/26/1997 8:51:00 AM
From: Walter High	of 99

Mike: Please correct me if I am wrong, but it looks to me like there is no reason to be charged interest when stock is shorted. First the broker borrows the shares unbeknownst to the lender. He sells them for you (the shorter) on the open market. The broker holds the money in trust until you cover your short. During that time, the broker has the use of the money that was gained from the short sale. If this is the case, the broker certainly does not need to charge you interest because he is getting interest from the use of the money gained from the sale. Please let me know if it works differently than I have outlined. Walter High

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