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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: RocketMan who wrote (22889)	8/22/1998 5:18:00 PM
From: The Street	Read Replies (1) \| Respond to of 50264

Some BB's are marginable RM. It is up to the brokerage for the most part. I say if shorting BB's is illegal-- SHOW ME THE LAW!!!!!!!!!!

To: RocketMan who wrote (22889)	8/23/1998 2:39:00 AM
From: paulmcg0	Read Replies (2) \| Respond to of 50264

[You say you have done this through ETrade, they say they do not allow this] This is just more of your lying and misrepresentation. Since you're obviously not literate enough to follow a message thread, I'll have to explain it to to you: (1) On a completely different thread ("Why are the OTC stocks dying?") -not- the DGIV I thread, I made the post containing my advice for making money off of OTC stock scams. See Message 5494778 (2) I posted a message that said "You can short stocks that you own -- I've done it before with a Nasdaq stock" (see Message 5502946 ) (3) Mark C. posted a response to that message that said, "Through which Broker and how many days did they give you before settlement ?" (see Message 5503035 ) (4) I posted a response to that message that said, "The broker was ETrade, and there was no problem with settlement dates, since the shares were already in my account" (see Message 5503141 ). I never directly said I shorted OTC BB stocks through ETrade -- that was your fabrication, and I enjoy catching you when you lie. However, as I have previously pointed out, there is nothing in ETrade's trading rules that prohibit you from shorting OTC BB stocks as long as they are over $5 a share. As far as being a marginable security, if you have a margin account, most brokers consider any share trading at over $5 per share to be marginable. I have also pointed out that I couldn't find any SEC law or regulation prohibiting the shorting of OTC BB stocks. You should have someone with an ETrade account check out their guide to shorting stocks at: trading.etrade.com (The https URL means that it is a secure (encrypted) page.) In fact, I think that ETrade might be quietly encouraging the shorting of low priced stocks, because thanks to some peculiar margin requirements, mentioned on the shorting page above, you have to keep 35% of the share price of a stock that is trading above $5 per share in an account that does not pay interest. But for a stock that is trading below $5 per share, you have to keep 100% of the stock price if it is between $2.50 and $5 per share, and $2.50 per share, if the shorted share is trading below $2.50 per share. So, essentially, on low price shares, ETrade gets an interest free loan from you while you hold the short. They probably make a good deal of money that way, because they make money twice -- once from the margin interest you're paying while in a short position, and again from loaning out the cash you have to keep in your account in order to maintain the short in a share that is trading below $5 per share. Paul M.