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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Terry Jackson who wrote (8468)	1/19/1998 3:45:00 PM
From: taxikid	Respond to of 13925

simple if you borrowed to get it..{bought it on margin, it is still an asset securing the $$ that were loaned to YOu to buy it.. as the asset sits in the account, it can be shorted against.. and you cannot stop this unless you PAY CASH for it.. it also allows your broker to hold the cash the other party sells it for.. so instead of having your stock and the other guys cash.. you have virtual stock and the shares are somehwere in transit.. with the advent of computers this is an amazing way for the brokers to generate commissions.. so you sell your stock and the other then has to cover.. {unless they can allocate more shares to short}and the assets in everyones accounts look bigger.. but it is the broker who retains all of the real money.. taxi