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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Mark Davis who wrote (11897)	2/17/2001 4:18:52 PM
From: Jon Tara	Read Replies (1) \| Respond to of 18137

Mark, IPOs are definately not marginable. There are two problems here: 1) How can you short them if them can't be margined? Where do the shares come from to borrow? Don't most shares that are borrowed to be shorted come from margin accounts, where the account-holder has agreed to loan shares? Are their cash accounts that also have this agreement? 2) You normally short in a margin, account, right? But the stock isn't marginable. You can't short it in your cash account, so how is this handled?