ARBITRAGE FOR THE SMALL INVESTOR Message Board

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Strategies & Market Trends : ARBITRAGE FOR THE SMALL INVESTOR

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To: TimbaBear who wrote (6)	11/29/1997 11:42:00 PM
From: T Roberts	Read Replies (1) of 34

A short sell will usually happen in margin account...the brokerage firm will have a loan department that's in contact with other brokerages and they actually loan shares out of customer accounts to each other... if you sell short 1000 shs company X... the broker confirms that they can borrow 1000 shs of company X ..if so then they sell 1000 shs for you at limit or market ..whatever you specify and then you owe them 1000 shares of company X I'm not totally sure which account the money from the sell goes into..but you can't spend it until you pay back the shares you owe ... of course they always make exceptions for special clients .. You usually can't short a stock that is under $5 or is not deemed marginable..(most all big name stocks are marginable)

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