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

To: TimF who wrote (82233)	7/11/2000 12:38:12 PM
From: Richard Gibbons	Respond to of 132070

As I understand it (only from what I've heard on this thread) a short rebate is the equivalent to the interest that you would receive on the money that you get from the short, minus some fees from borrowing the stock. It works out to somewhere around 70% of money market rates. i.e. If you short a stock at $10, $10 is in your account until you cover the short, but you don't make interest on this money. Instead, most brokers steal the interest. A short rebate is a way to get some of the interest back. Richard