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 : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (5962)	12/10/1999 9:56:00 PM
From: OZ	Read Replies (1) \| Respond to of 18137

All of this, of course, assumes that there is no "affirmative determination," LPS5 <<<---- what does this mean???? I think you meant all this assumes that there IS Affirmative Determination. (NASD rule 3370). regards, OZ

To: LPS5 who wrote (5962)	12/10/1999 10:38:00 PM
From: brec	Respond to of 18137

The bid test rule says that if the spread is 1/16 or wider, the short sale must be executed at 1/16 or more above the present bid price. If the spread is less than 1/16, say, 1/32, the short sale can be executed AT the bid price. This implies for a spread >= 1/16 that a current bid which is higher than the previous bid cannot be hit with a short sale. That is contrary to my understanding. Has the following, which begins Chapter 9 of the NASDAQ Trader's Manual Chapter 9, dated 10/1/98, been rescinded? "National Association of Securities Dealers, Inc. (NASD ©) Rule 3350, or NASD Short Sale Rule, was approved by the Securities and Exchange Commission (SEC) on a pilot basis through March 31, 1999. In general, the rule prohibits NASD member firms from effecting short sales (for customer or proprietary accounts) in Nasdaq National Market© (NNM) securities at or below the current inside bid whenever that bid is lower than the previous inside bid. (This is called the ?Bid Test,? as opposed to the ?Tick Test,? which applies to exchange-listed securities under SEC Rule 10a-1, the SEC Short Sale Rule.)"