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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked
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To: Junkyardawg who wrote (6336)1/10/1999 1:43:00 PM
From: Colin Cody  Read Replies (1) of 90042
 
dawg, If your story is accurate, all is not lost.

#1 You said you have no margin account. If you do not have a "type 2" or "margin account" then you MAY NOT SHORT STOCKS. You *MUST* APPLY to get the authority to borrow cash for buying and to borrow shares for shorting.

i.e. if your broker let you short when you did not sign the disclosure statements, you have an EXCELLENT case for damages against the broker, who BY LAW, SHOULD NOT HAVE LET YOU SHORT THE STOCK.

#2 Let's play devil's advocate and say you just screwed up because you didn't realize you were selling and selling and selling more and more shares. For this a good LAWYER is needed, but a brokerage should NOT allow you to sell and sell with the idea that you'd (A) come up with the shares in three days or (B) go beyond your in-house margin account availability or (C ) trade far beyond your normal trading practices or (D) allow you to go beyond what a broker's "due care" would dictate.

I'd say you have a BETTER than EXCELLENT case here, assuming what you posted was the full, truthful story. If the brokerage has stonewalled you aggressively on this case, then you have a good possibility for TREBLE DAMAGES on top of getting your losses back.

Since the numbers here are material to you, get a good SECURITIES ARBITRATION LAWYER for representation.

Good Luck

Colin
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