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Technology Stocks : Lucent Technologies (LU)
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To: Jesica Dawnet who wrote (20523)7/17/2002 3:51:19 PM
From: DiB  Read Replies (1) of 21876
 
When you sell a stock short, you are borrowing shares from your broker that you do not already own. You then sell them on the market in the hope you'll be able to buy them back later at a lower price.
I think it goes like this:

You must have a margin account in order to place short sales. You can hold the shares short as long as you meet the margin requirements for the position, and the broker can continue to borrow the shares.

The definition of a marginable stock: stock approved for buying on margin. Some brokers have the $5 rule, stating that a stock under 5 dollars is not marginable... does not count towards your margin requirement.

I hope this helps. You can find info on this all over the internet.
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