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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.37-0.9%Dec 3 3:59 PM EST
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To: TraderDad who wrote (12186)7/31/1998 5:35:00 PM
From: umbro  Read Replies (3) of 164684
 
I wondered when the brokerages would get around to taking AMZN off margin.
Traderdad, wrote:
Did anyone notice today that Datek made AMZN non-marginable! This is usually reserved for $5 dollar stocks.
(anticipation?) This coupled with the unavailability of short shares certainly tells us where the brain trust at
Datek believes this thing is headed. Does anyone know of short shares are available anywhere?

It may be that Amazon.com was giving them too many headaches.
Although the bears and short-sellers are complaining about lack
of supply, and have had their heads taken off twice by short squeezes,
consider the trader that went long at 140 in his margin account. :)

By no longer being available for margin, they don't have to worry
about answering the question: "do you have AMZN shares to short?".
No margin, no possibility of shorting it. Consider the following
conspiracy theory: the "big houses" on Wallstreet got tired of
hearing that Datek was coming up with shares for its clients to
short, because it makes it too difficult for them to artificially
keep the price as high as it is. Their fix: complain to the SEC
or NASDAQ, and have them lean on Datek. Datek's course of action:
not to say "no", but simply to say "not marginable".

I wonder if this applies only to Datek? Did NASDAQ recommend
this restriction to all market makers and brokers? Does it only
apply to initiating transactions, or were all margin shares
swept into the cash account? Hopefully, not the latter: because
it will cause both longs and shorts to liquidate.
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