Zitel-ZITL What's Happening Message Board

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Technology Stocks : Zitel-ZITL What's Happening

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To: Mama Bear who wrote (18038)	9/22/1999 5:07:00 PM
From: dumbmoney	of 18263

Daniel, the only non interest bearing portion of a short sale in my account is the actual proceeds of the sale. To use your numbers, short sell 1000 ZITL at 11 1/2, and I have to put up 5250 in security. But that security can be in the form of money market cash or any negotiable security. ZITL falls to 1 1/4, and 10250 is released from my type 5 (short) account into my type 1 (cash) account. That's right. To put it another way, covering the short does not add cash to your account, no matter what the stock price. In fact, covering doesn't really have any effect, unless you are operating at the hairy edge of your buying power.

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