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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?


To: Wyätt Gwyön who wrote (42025)11/1/2000 8:09:56 AM
From: GVTucker  Read Replies (2) | Respond to of 77400
 
Just to give a real world example, say you have $10,000 cash in an account. This $10,000 could support a short sale of $20,000 worth of a stock.

You would get interest on $30,000. At 5% interest, the total annual return would be 15% if the stock went nowhere.

Of course, that 15% can disappear pretty quickly with a levered short portfolio like that. Indeed, it is the rare short seller that levers a portfolio short in the first place.



To: Wyätt Gwyön who wrote (42025)11/1/2000 9:18:50 AM
From: bambs  Read Replies (3) | Respond to of 77400
 
i wish i could find a broker that did give you interest on the proceeds of short sale...I would have shorted a boat load of GE in my long term account. :)

Think about it...the broker lets you borrow the stock for free and sell it? then pays you interest on the proceeds of the sale.

Doesn't happen!

Bambs