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.

Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: MJ who wrote (6487)	12/15/1999 10:01:00 PM
From: Phil(bullrider)	Read Replies (1) \| Respond to of 6570

mj, My broker sold some of mine. Don't know whether he sold all. Makes me wonder if short covering isn't involved here in someway. I might be wrong with the following comments, but if I am, it should not take someone too long to correct me. 1. When one shorts a stock, it must be done with a margin account. 2. It is my understanding that if one shorts a stock, as/if the stock declines in value, the margin one used to short is reduced. In other words, you have your money back, even though you don't cover. So you can use the money to short other stocks, or to go long, whatever. Now, to further my understanding, it has been reported that there is no compelling reason to ever "cover". If one covers, they must report and pay taxes on the gains. If a stock that one shorted at a dollar is still reported as trading at a penny, or even if it is delisted, I don't believe one has to cover. In other words, you have the money, but don't have to pay tax on it. Again, I may be wrong. Have fun, Phil

To: MJ who wrote (6487)	12/16/1999 7:03:00 PM
From: Kalyan Kolachala	Read Replies (2) \| Respond to of 6570

>> Looking at the quote on Zenith---there is an indication that someone is still in the market. Your broker should be able to ferret this out. >> I have an account with Etrade and they don't show a quote nor does Yahoo. Is there a site where I can find a quote? I talked to Etrade and their rep told me that I'll have to fill a worthless securities authorization form and they can't guarentee it will be processed this year or if the loss can be claimed for this year. I would appreciate any info on alternatives. Can I contact some other broker and sell the stocks (for nothing) to him and claim the loss? Thanks, Kalyan