I really don't care whether or not BB stocks can be shorted. I don't short BBs, or any stock, but if I did I can think of some that I would love to short. My point is not this, my point is that Paul McGinnis claims to have shorted BB stocks through his ETrade account. This is what he said:
The broker was E*Trade, and there was no problem with settlement dates, since the shares were already in my account. As I pointed out before, there is nothing I could find that would prohibit you from shorting an OTC BB stock, if your broker could legitimately borrow the shares from some place.
I asked ETrade if this is possible, because I also have an ETrade account. They tell me it is not, because you can only short stocks that meet certain requirements, among which is that they be marginable, and BB stocks are not marginable.
Again, I don't care if anyone shorts a BB stock, I just don't like misstatements.
I have said before, that individual shorters actually help us because they eventually have to cover. . |
