To: Mama Bear who wrote (58568 ) 8/12/2000 10:18:04 PM From: LPS5 Read Replies (1) | Respond to Maybe we should go further back, then. Message 12726369 "I think that shorting should be decoupled from the margin requirement anyway" I don't think there are any exchange or SEC rules requiring a margin account for shorting. Mama, in McDonalds: "I don't think there are any state or Federal rules demanding that deep fried foods should be prepared in vegetable oil as opposed to motor oil." )Message 12726756 short sales may not take place in cash accounts. LPS5: "There sure is. A health department rule stating that deep fried foods CANNOT be fried in motor oil." ) Message 12727433 "Hmmm, can you tell me how onion rings are fried if there's a regulation prohibiting preparing them with motor oil." )Message 12727492 Am I mistaken in my impression that an OTC BB can't be carried in a margin account? "Steve, is vegetable oil required to prepare deep fried foods?...Am I mistaken in my impression that onion rings can't be prepared in vegetable oil?" )Message 12981120 regardless if the stock is marginable. "Yes, vegetable oil is used for deep fried foods." )I don't think there are any exchange or SEC rules requiring a margin account for shorting. short sales may not take place in cash accounts OTCBB stocks are in fact not approved for margin in the U.S. under Reg T. However...[w]hat I said previously was that a short sale can only be executed in a margin account, not a cash account. That is the case. Am I mistaken in my impression that an OTC BB can't be carried in a margin account? Yes, margin account is utilized for shorting, regardless if the stock is marginable. Message 12726369 Message 12981390 Message 13008704
