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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Frog 99 who wrote (10313)	8/3/1999 10:18:00 AM
From: Rande Is	Respond to of 57584

SHORTING: Frog, depends on your point of view and the broker. A single broker running out of shares to borrow against is not at all uncommon. . .the short-seller merely calls around to other brokers until he finds one with shares. The dishonest short-seller shorts with "naked" shares. . .in other words, he shorts ANYWAY. . .even though there are no legitimate shares borrowed against. Remember, you can only borrow against a share one time in U.S. The SEC is very busy though, so they may or may not catch up to you. Offshore accounts may even allow you to short naked. . . .heck, in some countries, I hear you can short naked, while sunning naked. <g> For the long, it really has little meaning . . because as I point out, if a short wants to short, they will take whatever action they feel is justified to get the job done. Now if you were talking about a very small float, like 1 mil or under and there were no longer shares to borrow at ANY of the major brokerage houses. . . and nobody could find a broker that had shares. . .and there were not a high percentage of shorts with offshore accounts. . . .then a quick squeeze by longs could hurt shorts. . . but remember. . . as the day rolls on conditions change. But that is strictly hypothetical. I have never seen that scenario actually happen. Not once. Rande Is