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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) -- Ignore unavailable to you. Want to Upgrade?

To: barbara sperino who wrote (38368)	6/18/1999 4:03:00 PM
From: wonk	Read Replies (2) \| Respond to of 43774

Does this mean that if I wanted to short a stock selling for .15 I might have to have $5.00 per share of money in my account for each .15 share of stock I want to short???????? No it means that you will have to have at least $0.15 in cash, in your account, for every share you short at $0.15. Different firms have different threshholds. They may require 120%, 150% or - I've heard - even 200% of the value per share. The cushion shields the firm if the trade goes against you. If you continue to hold when the trade is going against you, you will probably get a capital call. The profit from the short sale (assuming there is profit) is only available to your account after you close the trade. However, if you already hold the shares, it becomes much easier, as long as you own them outright and are not margined.