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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 229.10

-1.4%

3:59 PM EST

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To: The Reaper who wrote (117517)	2/12/2001 3:16:28 AM
From: Glenn D. Rudolph	Read Replies (1) of 164684

I'm curious as to the specific reason they wouldn't allow you to keep the short position while buying long to hedge the short, keeping both positions open until you were ready to close out one side or the other. Was it a question of margin/buying power? The report just said that the broker termed the position "illegal". That's got to be misreported since it's not. Actually, the brokerage firm would not permit the position indicating it was illegal. The margin department made that decision. It is not illegal as we all know. Margin buying power was not an issue at all. I had pleanty of buying power. The brokerage firm was a division of a regional bank. There was lack of experience in the brokerage business. They later bought out a small brokerage firm to be the brokerage devision after a variety of litigation problems. Short against the box requires less equity to hold compared to a pure long or short position. Just trivia here. Glenn

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