SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: dennis foster who wrote (23120)4/1/1999 10:07:00 PM
From: MskiHntr  Read Replies (4) of 44908
 
Dennis, Zeev has presented an excellent example of how a "floorless convertible" works but I do believe he is in error when he says :

"What people do not understand is that the floorless piece of paper is the collateral he uses all the time, not cash, and thus unlike other shorters that need to keep 50% cash against their short, he does not even have to do that."

Whenever a short position is put on there is a requirement under, I think, Reg T, that there you must have sufficient collateral in the account which can be in the form of cash or fungible securities and you must be able to borrow the shares. I will check the Reg T requirements on Monday with the credit department.

In the case of TSIG's convertible they are restricted and if converted the shares are restricted under Rule 144. So you cannot use restricted shares as collateral as they are not fungible, i.e., not good delivery.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News