SI
SI
discoversearch

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 : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?


To: LLCF who wrote (60430)7/21/2008 1:08:10 AM
From: LLCF  Respond to of 78439
 
It should be noted that the money made "naked shorting" by a brokerage house is this:

short 1000 FNM @ $10= $10,000 x X% (borrow cost est. say a few %) x days/365.

It's a 'banking play'. Brokers make no profit by the short making money. If they borrow the stock they still make X-borrow cost.

dAK



To: LLCF who wrote (60430)7/21/2008 1:18:06 AM
From: bull_dozer  Read Replies (1) | Respond to of 78439
 
LLCF,

Thanks for all your inputs. Is it true that moving a stock to the "cash account" from "margin account" makes it unavailable for "loaning it out" for shorting?

From "Art of Short Selling" :

books.google.com

The best short busting strategy a company has is "to improve the revenues and earnings"