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

To: Puck who wrote (53224)	3/17/2000 12:49:00 AM
From: Mama Bear	Read Replies (1) \| Respond to of 122087

Puck, affirmative determination is more commonly referred to as 'getting the borrow'. It just means they make sure you can deliver the stock at settlement before you enter the trade. Regards, Barb

To: Puck who wrote (53224)	3/17/2000 2:00:00 AM
From: LPS5	Read Replies (1) \| Respond to of 122087

Puck, Let me jump in quick: A customer is long if they either own the stock in a brokerage account OR have the stock in their possession, albeit not at the brokerage firm (i.e. stock certificates in a box in their closet). If you want to execute a long sale of stock in your account, it's easy enough for the BD to know what you have in your account. If the stock is in your physical possession you can still sell it long, but, you must provide the broker with your guarantee that you know where your physically held shares are, they are in deliverable form (thats a conversation unto itself), and that you'll send them promptly (overnight is the usual specification). If you can't do this, or fall through on your promise, affirmative determination will not be met and your sale will be marked short. Affirmative determination can be satisfied in ways other than actual physical ownership of the stock certificates: exercising an options contract, warrants, or rights underlying the issue in question or tendering a convertible bond for conversion into the equity shares of the issue in question are acceptible as well. Now, if you are initiating a short sale, the BD must determine whether a) you, the customer, will be able to deliver the stock by settlement date, or that b) they, the firm, will be able to borrow the stock by settlement. Typically, firms will keep a short list containing the names of those issues which they generally believe to be readily borrowable, along with numbers of shares typically available. The NASD requires that this list be updated every 24 hours and that it reflects changes in borrowing availability upon settlement dates a few weeks out. LPS5