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Gold/Mining/Energy : Donner Minerals (DML.V) -- Ignore unavailable to you. Want to Upgrade?

To: wayne cath who wrote (2502)	12/23/1997 12:55:00 AM
From: Feline	Read Replies (2) \| Respond to of 11676

The regulations with respect to short selling are not a disgrace. As far as I'm concerned, the only hole in the regulations, and granted it's a big one, is the definition of "what initiates a transaction and what constitutes a completed transaction with respect to the interests of company principals or other insiders?" A brokerage house, by law, shall not lend out any securities from any account that is fully paid and not a margin account. Any securities held in a margin account may lent or pledged by the brokerage house to anyone, short sellers or as collateral to the bank. Once you enter into a margin agreement with a broker, it owns what's in your account as long as there is a debit in the account. The margin amount is treated by law as a loan account and the broker, because it is comitting capital to the account, the account is treated as a liability of the broker and thus the securities pledged by the margin agreement are its property until paid in full by the owner of the account. This is not covered short selling. Covered short selling refers to a short sell that is offset by a convertible instrument or a call option. What he said was not correct plus it left the wrong impression of what the problem really is.