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To: Dolfan who wrote (33645)12/11/1998 2:01:00 AM
From: paulmcg0  Respond to of 50264
 
One of the reasons that it is easier to short stocks above $5 per share is because of the standard margin contract that brokers use. If you bought stock on margin, those shares can be loaned out to shorters, according to the fine print in the margin contract. It's amusing that you think Val and I are Fidler and A-10 though.



To: Dolfan who wrote (33645)12/11/1998 2:06:00 AM
From: paulmcg0  Respond to of 50264
 
Here's a clarification to the previous message about why shares trading above $5 per share can be shorted, if they are bought on margin. The legal phrase used for the brokerage loaning out your margined securities is "hypothecation".