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

To: Jesse Livermore who wrote (41510)7/25/1999 1:40:00 PM
From: eims2000  Respond to of 122087
 
When you short a sub $5 stock it does not show up in your margin account, it shows up in your cash account. I think this may be the point of confusion. When you short a sub $5 stock on a cash basis then you are not using margin at all. Borrowing the stock is not the same as borrowing money (margin) to buy or sell a stock. What broker do you use that does not allow this?

rhansen



To: Jesse Livermore who wrote (41510)7/25/1999 2:03:00 PM
From: Mama Bear  Read Replies (1) | Respond to of 122087
 
Jesse, perhaps you were misinformed. It is a popular urban myth that you are quoting. Both the requirement for marginability and the arbitrary $5 level are house rules imposed by the broker, not statutory. From Yamner & Co's head trader: #reply-8821278 in response to this: #reply-8811212.

Quoting Liz Heese, OTC BB Regs Deartment: #reply-10213106

Hope this helps,

Barb


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