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To: Gary M. Reed who wrote (2174)	11/20/1997 11:48:00 PM
From: Investor2	Read Replies (1) \| Respond to of 42834

So, let me see if I've got this straight. I can purchase 100 shares of xyz on margin in my Type 2 account, half of which purchase amount is borrowed money. The broker can then lend out the 100 shares xyz to someone else, who can sell the stock (sell short) to someone who, if he purchases the stock on margin, again only pays 50% and borrows the other 50% from his broker. Since the stock is then in his Type 2 account, his broker can then loan the stock to someone else ... What is wrong with this picture? Thanks for the insight, I2