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Gold/Mining/Energy : American International Petroleum Corp
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To: MulhollandDrive who wrote (1864)8/30/1997 9:56:00 PM
From: Zeev Hed   of 11888
 
Betty: Most brokers will let you short against the box any shares you actually own and hold with them. The reason brokers do not like customers shorting low priced stock and volatile stock is to protect themselves in case the trade turns against you. This is why low priced stock are usually not marginable and as such not loanable. If you own the stock, they need not find margined stock (or stock in margin accounts or elsewhere) to borrow. Furthermore, they have your stock as the best collateral.

Zeev
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