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Microcap & Penny Stocks : KANA - undiscovered Internet Company! -- Ignore unavailable to you. Want to Upgrade?

To: MakeAFuss who wrote (233)7/2/1998 11:40:00 AM
From: Andrew H  Read Replies (1) | Respond to of 1268
MakeAFuss--It is true that BB stocks are not marginable to but for a long position, however they CAN be shorted. I suggest you call again and speak to the extension below at Fidelity. The information I gave is absolutely correct. It is true that you need considerable cash reserves to short BBs, but there is no problem in principle, doing it, as long as they can find the shares. The shares have to be held in a margin account in order to be shorted but that is another matter, since non-marginable stocks can be held in margin accounts. Furthermore I was just informed that you can use margin to short a BB stock at Fidelity. If a BB stock is selling for 9, they only require $3 in equity for maintenance to short it. Call the 1 800 number and ask to be transferred to Cary Lumkes at extension 7475 in Dallas.