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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Puck who wrote (53220)	3/17/2000 12:32:00 AM
From: Mama Bear	Read Replies (1) \| Respond to of 122087

Puck, the domestic rules were recently changed concerning IPOs. It used to be 30 days but is now ok after settlement, i.e. 3 business days. Of course affirmative determination still applies, and getting a borrow could be difficult. The folks you see shorting IPOs on day one are probably trading offshore where the brokers don't bother with affirmative determination. Regards, Barb

To: Puck who wrote (53220)	3/17/2000 12:40:00 AM
From: Kevin Podsiadlik	Read Replies (2) \| Respond to of 122087

Someone on another thread keeps insisting that it is illegal to short sell a stock within 30 days of an IPO. This is a very popular misconception, which I think is being perpetuated by brokers afraid to lose business over their restrictive policies. You are exactly right that it is the brokerages who by and large set their own rules regarding short selling. The only thing the SEC requires is an uptick and the location of a borrow. The latter is usually not possible until at least three days after the IPO, which means that in order to short sell an IPO the same day it opens, you would need to use a broker outside the SEC's jurisdiction, basically meaning, outside the US.