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To: Mark Myword who wrote (3262)6/15/1998 12:16:00 AM
From: Mary A Young  Read Replies (1) | Respond to of 4969
 
Nor do I, William....do post any response that might help the group.

I have had some strange situations lately with whether or not i can short certain stocks. I know of several who use various brokerages that all use the same clearing house for trades. There have been stocks that the others were allowed to short and I couldn't. And there have been stocks that I could short and they couldn't.

Is the shortable stock inventory something that comes from the clearing firm, or from the individual brokerages?

I get a bit confused with this stuff.

Mary



To: Mark Myword who wrote (3262)6/15/1998 9:59:00 AM
From: Darren  Respond to of 4969
 
What would happen if we, as individual investors had shorted a stock that our firm allowed us to short....and then learned it was illegal in that shares were not available? I'm sure our firm would be in deep do-do, but what would happen to us as individuals?

Well, if the brokerage is FSIC insured, you're probably OK as it is their stupidity and even if they go insolvent, the gov't could legally step in. If not, guess who takes the plunge?