Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: smchan who wrote (64658)	12/18/2000 10:07:21 PM
From: Mama Bear	Read Replies (1) of 122087

"For the short, your original investment is $12 and your profit is $9, so your ROI is 9/12 or 75%" But he didn't actually invest any money in the short sale. If you're going to insist that the security required is an 'investment', then only 6 per share was required, whether or not the trader chooses to use leverage. If I shorted at 12 and the stock is now 3, do I still have 12 'invested'? The answer is no since I'm now required to have 3 per share in security (rules change sub 5). You are also thinking of this from the long point of view. Don't forget that the security you put up for a short sale can be any form of marginable equity. Regards, Barb

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