Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Jesse Livermore who wrote (41506)	7/25/1999 1:04:00 PM
From: eims2000	Read Replies (2) \| Respond to of 122087

Checked? Where? You are like the 5th person that has told me that I cannot do what I have done here in the US for the last year. Where are you guys getting this information? From your broker? DLJDirect shorts stocks under $5, as does ETrade, as does ABWately etc. etc. etc. I have 5 accounts here, the only one which doesn't allow shorts under $5 is Datek, but hell they don't allow most shorts over $5 as well. Marginable and Shortable are not related. Marginable means that you can buy or sell more shares than you have cash, in other words the broker is loaning you money with the stock as collateral. And yes, sub $5 stocks are not marginable, but they are definitely shortable. That means if I short a $5 stock then I must have $5 per share in my account. In fact if I short a $3 stock, then I still must have $5 per share in my account. Some brokers who tend to go after the naive market (maybe like your broker) impose these silly rules of not allowing sub $5 stocks to be shorted. But it is in now way the rule. Besides, if sub $5 stocks could not be shorted then they would quickly be sub $1 stocks.:) rhansen