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To: BDR who wrote (10015)	10/22/1998 9:53:00 AM
From: Jon Tara	Respond to of 16892

re: selective short restrictions. Dale, I don't think that they particularly care if their customers lose money. I do think that they care if THEY lose money. And if a stock drops fast enough, THEY can lose money, if an account goes to a negative equity position, and the customer doesn't make-good. ALL brokers have some criteria, in addition to governmental regulations, that they use to select candidates for additional margin requirements. When IOMG peaked, a broker at the time (Jack White & Co.) raised the margin requirement. (not to 100%, though). Wow, what a bubble detector! :) Ever since then, I have the greatest respect for broker's ability to detect high-risk situations. When I see a special margin requirement, it's a BIG red flag. Margin eligibility is one reason for not permitting shorts. The other is "no shares to short". Why is it so hard to accept that this can happen when everybody and his brother wants to short some really mangey dog stock? Yup, the very best, most reliable shorts are going to be the ones that you can't get. See, it works that way...