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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services
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To: Brad who wrote (14180)4/28/1998 3:57:00 PM
From: Leroyt  Read Replies (2) of 27968
 
FYI: Shorting BB stocks

I just spoke with someone in the OTC group of Nasdaq. 301-208-2802.

I was told:
1. ANYONE can short a BB stock.
2. BB stocks are NOT marginable but they can still be shorted.
3. BB stocks can only be shorted through a margin account. Since they are not marginable they require 100% collateral.

I asked if specific shares need to be borrowed. I was told that the broker only needs to conform to a rule called "Affirmative Determination." I was given an explanation that I didn't get the details on but, in general, shorted stock is NOT specific shares but is from a general pool of shares (as I understand).

Hope that's useful for all those interested.

later, leroyt
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