Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: scotts who wrote (31054)	4/18/1999 2:41:00 PM
From: RockyBalboa	Read Replies (1) of 122087

If I have shares to short (ie obtained a borrow) and want to sell, but hedge a long position on a different account by selling short the shares I borrowed, I have a "box". A boxed position has no market risk. In other words, if I don't like the present market price, I can keep my box and decide to "unbox" later. Some cite also tax reasons for a "box". Short shares and buy them back later, but leave an initial, years-old long position untouched. But I'm no expert in U.S. taxation so i can't comment on tax aspects. There are some nasd regulations for a box. Most important is that the box may never be used to circumvent the uptick rule on shorting a stock. regards, IS

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