[They deny that you were able to short BB stocks through them]
What kind of lies and quoting out of context did you tell E*Trade??
Here's what their page on shorting a stock says, and you will note, that there is no mention of OTC BB stocks:
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Short Sale Requirements
* You must have a margin account.
* E*TRADE must be able to borrow the shares for you in the first place.
* The security being sold short must be a marginable security valued at $5 or more per share.
* The trade can be executed only after an uptick (or zero-plus tick for listed stocks).
* Short positions are subject to buy-in at any time if E*TRADE cannot continue to borrow the security.
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If you go back to the original post, Message 5494778 , you will notice that I said short the OTC BB stock after it climbs above 5 dollars a share. There are other brokerages who will let you short below $5 a share though.
Also, as far as "shorting against the box" goes, I've done it before with E*Trade, last fall, but as I pointed out in Message 5502946 and Message 5503141, "You can short stocks that you own -- I've done it before with a Nasdaq stock", which was the reference to E*Trade. Notice that their customer agreement [above] does not prohibit you from doing this to an OTC BB stock. E*Trade is similar to other brokers. I suspect you sent inflammatory and misleading e-mails to a low paid E*Trade customer service representative who didn't know.
And, speaking of E*Trade, did they tell you that they accepted my order last week for 500 shares of DGIV at 1 dollar per share? (More than it is worth, but I was experimenting with the OTC BB trading system. No, they weren't able to fill that order, but it did get entered into the OTC BB system.)
Paul M. |
