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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Grantcw who wrote (11671)	11/26/1998 1:11:00 PM
From: Steve1	Respond to of 19331

Naked shorts neither own nor intend to own the stock they are shorting. Typically, they figure the company will go broke (RMIL) or get so cheap (EUTO) they can cover for next to nothing. They exist in BB listed stocks. Short sellers sell against the price of a stock they feel will drop. The sell through a brokerage house where buys and sells are recorded transactions. A stock generally above 5 dollars may be shorted by anyone. One restriction is that their broker must have shares available from them to short. Hope this helps. Steve

To: Grantcw who wrote (11671)	11/26/1998 2:02:00 PM
From: Parker Benchley	Read Replies (1) \| Respond to of 19331

Grant, This may also "foolishly" help as will the other twelve lessons. Just keep in mind a short that is naked has no certificates to back up their position. A legitimate short has actually borrowed shares. If all the shares are accounted for the "naked" holders (and/or their brokers) will be forced to find real shares at whatever the market price may be. In essence, the company has been "over sold" and somebody has to pay for their precarious risk. Some BB's have a short position in excess of 100% . fool.com Now think a minute on how dangerous that could be to a naked short if a stock like DCTC should suddenly be revealed as "the real thing" and the price goes to $10+. Hello Chapter 7, 11, 13 etc. Also, think about what a catapulting effect this could have on launching a stock into the most beautiful regions of ether the upper atmosphere has to offer! <GGG> Happy Thanksgiving and onward, George PS-Very insightful web pages!