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Pastimes : Asensio** King of the Shorts - LET'S RUMBLE! -- Ignore unavailable to you. Want to Upgrade?


To: Q. who wrote (225)1/14/1999 12:52:00 AM
From: Gerald Walls  Respond to of 257
 
Gerald, when you short a stock, you are selling something, so you get cash. That cash should *earn* interest for you. You don't *pay* interest on it.

Now, for a small investor like me, I can't find a broker who will actually pay me the interest he earns on that cash balance. Aufhauser was a discount broker that did pay this interest, but it no longer exists.


This is my experience also, but I had a guy telling me that his broker was charging him interest to borrow the stock. This didn't sound right to me and he probably wasn't getting the story straight.