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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Scott Lerner who wrote (4380)	2/9/1998 4:36:00 AM
From: John Cuthbertson	Respond to of 6570

Scott and pennyO, re: shorting Actually, a big institutional investor will not pay interest on a short position, but will rather receive interest: that is, they can get a higher rate of interest on the proceeds of the short sale (the "broker's rebate") than they must pay to borrow the shares. Shorting need not be short term. There are hedged "long/short" funds that constantly stay short some stocks while holding long an approximately equal value of other stocks. This is done not for leverage, but actually to reduce risks by staying neutral to the movements of the general market. (Also, the stocks they have shorted need not go down for these funds to make money, all they need is for their longs to outperform their shorts.) ZE in particular does have one characteristic that would tend to make it an unattractive choice for an institutional investor to short: its price is just so darn low! Of course, we hope that's just temporary. ==John