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

To: Mama Bear who wrote (53225)	3/17/2000 1:38:00 AM
From: LPS5	Read Replies (3) \| Respond to of 122087

That's wrong. The short sale qualifying test (barring offshore brokers, after hours transactions, de facto long sales, etc.) for listed stocks (NYSE, AMEX, regional exchanges) is the uptick rule. For Nasdaq stocks, it's the bid test rule. Two different guidelines. The former (uptick) specifies that a short sale can only take place on a plus or zero-plus tick; the latter (bid test) that a short sale can only be initiated at a price a 1/16 above the inside bid if the spread is 1/16th or more (AT the bid if the spread is less, i.e., 1/32 and smaller). Also - stating that Nasdaq Small Caps are exempt from the short sale rule is also wrong. The complete list of regulatory differences between Nasdaq National Market and Nasdaq Small Cap securities are as follows: 1. Both NM's and SC's are held to the same corporate governance standards, BUT are subject to different listing requirements, particularly in the minimum continuing bid price that must be maintained. 2. NM's are automatically approved by the Federal Reserve for margin. SC's are not. 3. This one regards market makers, proprietary traders, etc: transactions in NM securities have to be reported within 90 seconds by virtue of their inclusion in CQS. Trades in Nasdaq SC issues do not. Those are the differences. The manner and aforementioned standards to which short sales must be executed are no different for Nasdaq Small Caps than for Nasdaq National Market issues. Regards, LPS5