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A.J. Carisse wrote:
> Unfortunately, this won't work. Stocks can only be shorted when the *last
> sale* is on an uptick - your sale cannot by itself satisfy this requirement.
Sorry about that - this is true for listed stocks, but under the current NASD
short-sale regulation (currently re-extended until Nov.1, 1998), a legal short
sale may be executed in a down-bid situation where the sasle is effected at a
price at least 1/16 higher than the inside bid. WIth this in mind, it would
indeed be a sound strategy to go low offer near the best bid in these
situations. As a matter of fact, such a strategy may help balance out the
undesirability of the "uptick" by offering a better fill price than that which
may have been had otherwise, assuming the uptick rule did not exist.
Regards,
A.J.
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