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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: eims2000 who wrote (19085)3/10/1999 12:43:00 PM
From: Mama Bear  Read Replies (3) | Respond to of 122087
 
"My question was why did it sell at less than $5. I always thoght that was against SEC regs. "

Nah, that's just a general house rule, not a SEC reg or exchange rule. Most houses don't allow it because it's easy for a stock to move against you severely, and they don't want the risk. I've heard Schwab will allow shorts down to 3 1/2.

Barb



To: eims2000 who wrote (19085)3/10/1999 12:48:00 PM
From: Barronio  Read Replies (2) | Respond to of 122087
 
The $5 limit is your broker's reg, I think brokers do it that way so it coincides with the limit on marginable stocks and makes their bookkeeping easier.

The SEC limit is lower; I have been told by a broker it's $3, so above that and you're still legal in the US. I once tried to find a reference on the web for the $3 figure but couldn't, probably just didn't look in the right place.


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