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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (80996)	5/21/2000 10:03:00 PM
From: Curly Q	Respond to of 132070

I had posted questions about short sale proceeds being placed into money market accounts. I received some very good answers and links addressing the issue. I think I was being overly naive thinking that amounts collected short selling would immediately begin earning interest. This I think was due to what I read in Stan Weinstein's book Profiting in Bull and Bear Markets. The "money" collected is really a "margin amount." Even though the short seller sold, the "buyer" didn't pay over funds, since the "buyer" is basically a bookkeeping entry. If I was a brokerage firm, I certainly wouldn't pay interest on the sums "collected" by short sellers. A real advantage though to short selling is that you are not CHARGED interest. Any stocks you BUY on margin, you pay interest from the day they settle.