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Strategies & Market Trends : Shorting stocks: Mechanical aspects

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To: Q. who wrote ()6/10/1997 5:17:00 PM
From: Oliver Hellwig   of 172
 
What happens to the money received when the borrowed stock is sold?
Does the broker hold onto it? If so, then why do I need certain collateral requirements? However, if I get to hold on to the money from the short sale, then what are the restrictions placed on the use of the money?
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