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

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To: Anaxagoras who wrote (79)	5/14/1997 12:30:00 AM
From: RWalker	of 99

Thank you, Anaxagoras, for the excellent examples on shorting against the box. May I ask you a few more questions? This one has to do with the marginability of the stock. Take GANDF for example. This stock is non-marginable (the price being under 5, I guess?). Today this stock touched 2 5/8 at noon after opening at 1. Later it dropped to 2 and finally closed at around 2 1/2. My question has to do with the mechanics of price movement when the stock touched 2 5/8. Being non-marginable, this stock cannot be short sold, right? So the selling pressure at 2 5/8 was entirely due to traders closing their long positions - am I right? In other words, when a non-marginable stock comes under selling pressure, does it include a short sale component? Secondly, what happens when an under 5 (and therefore cannot be short sold) stock moves above 5 during the day? Does it get marginable (and therefore can be short-sold) properties immediately? If not when ? Thanks in advance. RWalker

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