Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: sommovigo who wrote (5989)	9/1/2000 10:54:38 PM
From: Bilow	Respond to of 19428

Hi sommovigo; Re why unmarginable securities may still be borrowed... As long as the owner of the stock keeps them in a margin account, they can be lent out, (and therefore borrowed) even if the owner can't borrow money on them. A lot of traders keep long positions in unmarginable stocks in their margin account, so there are frequently plenty of shares to borrow. I've done it many times. The normal thing to have traders on a trading floor call out to the "24" is "can I short ABCD?" But if a "trader" is in overnight margin trouble, he will sometimes ask instead "is ABCD marginable?" The answers to these two questions are independent. That is all four possibilities exist. Stocks can be shortable or not, and marginable or not, independently. In addition, they are sometimes shortable for "day trade" only, which means that you are supposed to exercise all diligence in covering your short before the end of the day. At times, covering your daytrade only short is impossible because trading has been halted intraday (usually a good thing for a short, but not always), but most times the cover is no problem, done either during regular trading, or during extended hours. -- Carl