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Microcap & Penny Stocks : NETZ - gets deal with DEC! future 100 bagger? -- Ignore unavailable to you. Want to Upgrade?


To: DGMAC who wrote (1354)12/17/1997 1:57:00 AM
From: insider  Respond to of 1702
 
>Please explain further.

>DGMAC

The market maker, in order to provide liquidity to the securities they trade, can go as long or short as they see fit. They are not under the same rules as the public. At some point they will reverse their positions, but they can carry a negative position on their books for an extended period of time.

In order for the public to short a stock they have to "borrow" one from stocks listed in the "street name". If the owner of the stock calls the certificate, the borrower has to return it to the broker causing a short squeeze. The problem with pennies is brokerage firms will not "lend" a stock that is not margainable