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.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (83262)	4/18/2007 11:55:04 PM
From: Cogito Ergo Sum	Respond to of 206326

OT: I was skimming a few of your posts. I almost lost my tea when I read your new marketing suggestion for MS Vista LOL..

To: Wyätt Gwyön who wrote (83262)	4/19/2007 9:48:41 AM
From: LoneClone	Read Replies (1) \| Respond to of 206326

Last time I looked the US had 10 times as many lawyers per capita as Canada. That was many years ago, but I'm sure the disparity is still wide. LC

To: Wyätt Gwyön who wrote (83262)	4/19/2007 10:40:21 AM
From: CapitalistHogg™	Respond to of 206326

OT: Wyatt, is it possible for a retailer to short a Reg SHO stock? If so, HOW?! Below is an example of what i'm trying to accomplish with arbitrage....TIA Real time example of an arbitrage At exactly 14:45 on 4/16... (Short)NRMX Stock traded @ $12.10 - 12.20 (Long) NRMX May 17.50 calls @ $2.30 volume 894 (Short)NRMX May 17.50 puts @ $8.30 volume 894 That would be a .60-.70 risk free in a month! @ expiration all you are left holding is the cash. The problem is that NRMX is on the Threshold Security List... fool.com While Reg SHO stipulates that a broker is supposed to locate shares prior to executing a short sale, there are certain exceptions to this rule. One is that if a stock appears on an "Easy to Borrow" list, this is considered "reasonable grounds" to assume the stock can be located for settlement, and the short sale may proceed without the broker contacting the source of the shares or specifically locating them. (A footnote in the SEC's discussion of the final rule [release number 34-50103] adds: "Of course, securities that are 'threshold securities' pursuant to Rule 203(c) should generally not be included on 'Easy to Borrow' lists." Geez, really? But sometimes it's OK for heavily manipulated stocks to be shorted further without locating shares?) Another exemption is for "Bona-fide market making." Is it just me, or does the specification that bona fide market making is exempt -- versus sorta market making? --point to some possible wiggle room in interpretation? The SEC is quick to explain that, among other qualifications, "Bona-fide market making does not include transactions whereby a market maker enters into an arrangement with another broker-dealer or customer in an attempt to use the market maker's exception for the purpose of avoiding compliance with Rule 203(b)(1) by the other broker-dealer or customer." Thank goodness deliberately circumventing the rules is forbidden by the rules! That's kind of a tiny echo of Reg SHO itself, which is a set of rules about not breaking 71-year-old laws. I think history has shown us that the rules aren't terribly effective without enforcement.