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To: caly who wrote (3354)2/18/1999 1:10:00 PM
From: paulmcg0  Read Replies (1) | Respond to of 5300
 
Generally, stocks over $5 per share can be shorted, if the broker can find shares to borrow. Often times, the borrowed shares are shares bought on margin by someone else, and not paid for. (The legal term for this is "hypothecation" and it's a standard clause in margin agreements.) In the case of OTC BB shares though, brokers really stick it to the shorters, often requiring 100% of the cash value of the shorted shares to be on deposit with the broker.