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Diamonds
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Sounds odd that Ameritrade said they could not borrow the stock ;-(
Diamonds can even be sold on a downtick:-
Trading DIAMONDS is as uncomplicated as trading stock. DIAMONDS - ticker
symbol "DIA" -- can be bought or sold through a broker throughout the
trading day on the American Stock Exchange and trade just like shares of
stock. Indeed, a single DIAMONDS share represents a share in the portfolio
of Dow stocks held in the DIAMONDS Trust. Just as a typical round lot for
stock is 100 shares, a round lot of DIAMONDS is 100 DIAMONDS. DIAMONDS
trade in round lots as well as odd lots (i.e., less than 100) on the
Exchange. DIAMONDS prices and quotes are reported in dollars and fractions
per DIAMOND. Fractions of a dollar are quoted in 1/64ths. DIAMONDS are not
only efficient but affordable. Their prices are similar to those of typical
shares of stock. DIAMONDS are designed as securities with a market value
approximating 1/100th of the Dow Jones Industrial Average. Thus, if the DOW
value was 8,000, you could reasonably expect a DIAMOND to trade at about
$80. Of course, DIAMONDS prices should also reflect its share of the
dividends accrued in the Trust on the DJIA stocks in the portfolio. And,
since DIAMONDS trade in an open auction market on the floor of the American
Stock Exchange, prices are affected by supply and demand as well as market
volatility, sentiment and other factors. Unlike ordinary stocks, however,
DIAMONDS are exempt from the uptick (or minus tick) rule that require
shares to be sold only on an uptick - a last-sale price higher than that of
the security's preceding last sale. Thus DIAMONDS can be sold short on a
downtick.
The net asset value (NAV) of DIAMONDS is computed each business day at the
close of trading on the New York Stock Exchange (normally 4 p.m., New York
time). NAV represents the aggregate closing market value of the underlying
portfolio of DJIA securities plus any accrued dividends, less accumulated
Trust expenses, on a per DIAMONDS basis.
DIAMONDS are also generally eligible for immediate margining under the same
terms that apply to common stocks. You should contact your broker regarding
initial and maintenance margin requirements.
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> From: JER3CUBE@xxxxxxx
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: RE: DJI-Diamonds or SPY
> Date: 22, Φεβρουαρίου 1998 2:34 πμ
>
> Hi RT-lister : )
>
> I went to put on a trad in djiDiamonds...listed on the
> Amex....and Ameritrade said they couldn't or didn't
> have stock to borrow for a short sale.
>
> Has anyone else had trouble borrowing stock
> and/or experince with the DIA.
>
> I have been advised that if that happens again,
> I should trade the SPY....Does anyone trade that
> and where to I get info on it?
>
> I am probably the only one that doesn't know already.
> but, please indulge my question.
>
> I saw Robert Duval in The Apostle this afternoon.
> If you liked Leap of Faith....you will probably
> like this one. People stopped leaving the theater
> when they ran the credits at the end of the show.
> It was almost like a new movie was starting.
>
> Thanks,
>
> GerryB/jer33:3
> eccl1:9
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