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

To: Grant Baker who wrote (2505)	12/23/1997 1:17:00 PM
From: Feline	Read Replies (2) \| Respond to of 11676

The same rules apply to the brokers trading account. Of course the broker is aware of how much of any security is available for lending as they are aware of their margin accounts status on a daily basis. They may prefer to lend it to themselves. The broker also has stock that it "earns" as a fee for varying corporate activities and it may hedge its position from time to time with short sales. If the stock does poorly they can deliver their long position to satify the short sale. Or they can buy it back and support the market in a maintenance role. Also, there is something called a greenshoe which is a legal short position by a broker with respect to the terms of an underwriting agreement. The broker is allowed to sell treasury stock to clients but the proceeds of the sales does not immediatley go to the company's treasury. But you know what I think? In the spec markets, I believe that most short selling is done by the indsiders, nominees of insiders or people close to them. They have the information and the least risk. Plus, if an insider shorts a stock, is it a trade under the definition of the act? When the insider covers that short sale is it a trade for anything other than tax purposes? Any lawyers out there to address this?