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

To: Anthony@Pacific who wrote (37612)	6/2/1999 10:33:00 PM
From: Mama Bear	Respond to of 122087

Tonight's #1 Hot topic proves margin calls can be guesome: #Subject-28684 I NEED To Sell a KIDNEY #reply-9917804 "You guys all think this is a joke I am desperate. The margin call has been made. I am heavily in debt. Have my donor card filled so that if and when I die everything else is free. I have few choices at this point. If not interested and cannot help please do not harass me." Barb

To: Anthony@Pacific who wrote (37612)	6/3/1999 12:20:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 122087

Anthony, Agreed, but as I said - generally U.S.A. retail accounts CAN NOT short IPO stocks during the first 30 days. Not until there is the general migration from type 1 cash accounts into type 2 accounts - which starts happening quickly after the 30 days are past. Retail accounts (investors/traders) are not Market Makers who short stocks and then usually cover A.S.A.P. in order to create and maintain an orderly market. Market Makers generally do not "take volume positions" by shorting IPO stocks per se. Why tie up their capital? They make money on churning and churning the VOLUME. I am not certain, but I BELIEVE that it is a rule violation for a MM to actually take a short position in an IPO stock in those first 30 days. I believe there's another MM rule prohibiting naked short selling with type 1 stocks as well (unless they get a specific hypothication agreement from the shareholder). I am not a MM, so I am not really clear on these MM rules. Rule 15c2-1 comes to mind as the Title 17 section I am thinking of. Colin