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To: MB who wrote (7677)6/16/1998 1:19:00 PM
From: Jeffrey S. Mitchell  Respond to of 10903
 
No, it's not illegal at all for MMs to short. Actually, that's their job! Making a market means MMs are constantly either long or short.

Yes, there are certain MMs that love to short BB stocks in the sense you mean. FAHN, MHMY, NITE come to mind.

And, yes, while it is technically illegal to short stock you haven't actually borrowed, it's not uncommon for MMs to do that from time to time from what I'm told. But as with BB stocks it's sometimes virtually impossible to know just how much stock is floating around, it's hard to know when this is happening.

- Jeff