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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Topannuity who wrote (21562)	6/16/1999 11:44:00 PM
From: Foad	Respond to of 68173

Since I don't trade IPOs much, I'll yield to others on the thread to help you with that question. Good luck.

To: Topannuity who wrote (21562)	6/17/1999 6:54:00 PM
From: OverUnder	Respond to of 68173

It's very difficult, if not impossible to sell IPO's short prior to 30 days after the offering. I believe by regulation, IPO's are not marginable and thus are not borrowable until then. If you buy IPOs, you might have noticed that they're always held in the Cash part of your account, not your margin account. In general, the same constraint limits offshore brokers. They can't sell what they can't deliver so they could only let you short sell shares held by other clients of theirs. Given the limited float of most IPO's, most off-shore brokers might not have any clients holding a broad enough spectrum of shares in IPOs to make it practical for them to support your short-selling desires. There's many a time I wished the above weren't true because a lot of IPOs do seem to reach unhealthy heights shortly after the offering only to come back down within the first 30 days.