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

To: LPS5 who wrote (58567)	8/12/2000 9:19:33 PM
From: Mama Bear	Read Replies (1) \| Respond to of 122087

Yes LPS5, I recall. I stand by my statement that steve never supported your position. Here's a question for you...why are you willing to take all that time to dig up all those links, but you're not willing to go cut and paste the salient language from Reg T? Q: "is a margin account required to initiate a short sale under reg T or any other Federal or exchange rule? " A: "Yes, margin account is utilized for shorting, regardless if the stock is marginable." Almost like going into a McDonald's and having this conversation: Q: "Is a deep fryer required to cook your french fries under Department of Health or any other Federal rule? A: "Yes, a deep fryer is utilized for cooking our french fries." You have a good night too, and just keep insisting that you're right, regardless of the facts. Regards, Barb

To: LPS5 who wrote (58567)	8/14/2000 1:36:31 PM
From: WhoLovesYa	Read Replies (1) \| Respond to of 122087

Please let me put your mind at ease. A stock does not need to be Marginable to be Shortable. This is a fabrication introduced by idiot brokers and proclaimed truth by even bigger idiot investors. In fact, short sales do NOT take place in a Marginable account. They take place in a third type of account usually noted as a type 3 account. (type 1 cash, type 2 margin. Get it?) So no, a short sale would never be able to take place in a cash (type 1) account. Nor would it take place in a margin (type 2) account. This is why there is all this confusion on why non-marginable stocks are or are not shortable. If you read Regulation T Title 12 CFR Part 220 especially section 12c, 12d, 12e. No where in there does it say you can not short non-marginable securites. In fact it doesn't even cover shorting rules (NASD does that). It only mandates what MINUMUM margin requirements a broker/dealer must use. Often brokerages will have higher restrictions than these. Many brokerages won't allow non-marginable securities to be shorted. THIS IS A BROKERAGE ISSUE, NOT A B.O.G. FEDERAL RESERVE ONE (or issuses the NASD has which is a whole other ball game). And thus, the idiots, enter the picture. "My broker does not allow me to short non-marginable stocks, therefore, all non-marginable stocks are not shortable" You can now see how this quickly becomes distorted. Just for reference, this is the section of regulation T listed above. frwebgate.access.gpo.gov Happy reading :)