FRANKLIN TELECOM (FTEL) Message Board

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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)

FTEL 3.280

-7.5%

Jan 12 3:59 PM EST

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To: topwright who wrote (12174)	6/11/1997 4:49:00 PM
From: M Allen	of 41046

Market Maker #1: Man, those Dirty Dozen are really something. They put their heads in the lion's mouth and then ask him if he is going to eat them. Market Maker #2: Yes amazing, if they had called NASDAQ at 1 202 728-8000 they could have had a conversation similar to M Allen's. M Allen: I need some information regarding market makers ability to short stock. Nasdaq representative: That is not my area of specialty, I will transfer you to a specialist. Nasdaq Specialist: Hello M Allen: I have some questions about a market maker short selling a stock that they trade. Nasdaq Specialist: Shoot M Allen: Can a market maker in a stock sell short? Nasdaq Specialist: Yes M Allen: Is there a limit to the number of shares? Nasdaq Specialist: No, there was a pending rule change but it never went through. So there is no limit. M Allen: Is there a time limit in which they have to cover the shorts. Nasdaq Specialist: No, no time limit. M Allen: So are you saying that if the market maker has a warrant to buy 50,000 shares of stock, they could sell the stock now, lock in their profits, and then cover those shorts by exercising the warrants in a couple of months. Nasdaq Specialist: Are we talking about a SmallCap or National Market stock. M. Allen: Bulletin Board Nasdaq Specialist: Yes, same rules as SmallCap. They can sell the shares now and then later cover them with the shares from the warrants. M Allen: I was told that they could lose their right to trade the stock if they were short. Nasdaq Specialist: Well there could be disciplinary action if they were shown to be manipulating the market. M Allen: Would selling shares to lock in their profit and then covering with the warrants later be considered manipulating the market Nasdaq Specialist: No M Allen: Thank you for answering my questions Nasdaq Specialist: You are welcome

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