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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (19368)	8/11/1999 1:38:00 PM
From: LastShadow	Read Replies (2) \| Respond to of 43080

One can short an IPO if one's brokers has shares to short. Generally one calls the broker in the morning if you are looking to short any stock, to make sure the get those shares set aside - regardless if you actually short that day. In general, there is a policy at many of the underwriters that they do not want you to short their IPO's sincethey almost always have a clause known as a green shoe (the extra shares the underwriters can buy if it turns out the IPO is a huge success). However, this is not the case for all underwriters, just most. The ones that don't get teh green shoe are most probably the ones who will let you short - along with any other broker who was able to pick up a large allotment of shares - those with small allotments generally call their better clients and thell them they got them 25 or 100 or 100o shares of whatever at the IPO price - from whatI understand, most (80%) do not flip them, and those that do are less likely to get future offers for the shares (ast least thats why I figure they don't call me anymore). If your broker has 'shares to short', they can be shorted. Having them available to short is not the same as being in possession of shares, as they may have them and disallow shorting. lastshadow