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Strategies & Market Trends : Tell it to John Reed Stark of the SEC -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (9)	3/7/2000 1:03:00 AM
From: Wayners	Read Replies (2) \| Respond to of 17

Dear Mr. Scoyoc: Thank you for your recent e-mail to the SEC. In your e-mail you ask if it is permissible to short IPO shares. Under section 11(d)(1) of the Securities & Exchange Act of 1934, it is unlawful for any member of the underwriting syndicate or underwriting group (including brokers) to extend credit in regard to initial public offering shares for the first thirty days following the offering date. This prohibition does not apply once the thirty day period has expired. Additionally, if the broker is not a member of the underwriting syndicate or underwriting group, they may not be bound by the prohibition. Short selling a stock, by its nature, is an extension of credit and, if done by a member of the underwriting syndicate or underwriting group, falls under the 11(d)(1) prohibition. I have attached rule 11(d)(1) for your convenience. Thank you for the opportunity to assist you. Steven Priddle Attorney