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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Gary Ng who wrote (52871)	3/18/1999 8:34:00 PM
From: DRBES	Respond to of 1578762

re: "It is my impression that the longer you short a stock(and don't have to cover because the price is lower than your short price), the more interest you are going to collect ?" This may date me or date the rules the last time I actually took a significant short position, but, the proceeds from the sale of the borrowed stock (like interest or offsetting loans in your margin account) go, instead, entirely to the broker in return for the service he has done for you in locating the stock that he has borrowed on your behalf. Remember, physical stock has to be borrowed from someone that is long the stock and holds it, I believe, in a margin account. When the actual owner decides to sell, another source has to be located promptly or you can be forced to cover. This is one of the mechanisms for pain in what is called a squeeze when your shorts are suddenly pulled up on you. Regards, DARBES