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


To: Colin Cody who wrote (37516)6/3/1999 12:48:00 AM
From: mchip  Read Replies (1) | Respond to of 122087
 
Colin, You indirectly answered the question of how IPO's can be shorted in the US. You stated <<But in the U.S.A. unless the IPO shares have been hypothicated they can not generally, legally be lent out to a shorter to borrow (for the first 30 days).>> Then you agreed with Steve from Yamner post #reply-7881484. <<IPOs may be shorted as soon as the clearing firm has a position which is hypothecated by the client.>>

What happens to all the shares SOLD on IPO day? They are bought and most likely put in margin accounts (“hypothecated”). So when these shares are settled after 3 days they can be borrowed.

The shares are out there…



To: Colin Cody who wrote (37516)6/6/1999 3:00:00 AM
From: Barronio  Read Replies (3) | Respond to of 122087
 
IPOs basically CAN NOT be shorted.

Can a retail US investor short an IPO before 30 days have passed?

It's simple, either he can, or he can't. Forget basically, generally, always, rarely, or any other qualification. You are simply obfuscating the question.

I know the answer, do you? Everything you have said so far indicates you don't.

The answer is: yes, he can.