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The rule that you can not short in the first 30 days is
a NASD rule. Since margin is not available a short sale
can not be executed because you need a margin account
to short. You and the firm are in violation.
An in house account makes no difference. If the firm
or the NASD finds out you might have to give back your
profits. They will let you keep your losses.
Norman E.
Richard Karst wrote:
>
> In regards to Shorting IPO's etc.... I have an account with a brokerage
> firm that clears through SouthWest Securities. I use Tradecast software with
> an NQDS feed on a proprietary (no Internet ) dial in for direct execution
> onto the Nasdaq market.
>
> >
> >Regarding IPO failures recently, I used to be told that I couldn't short
> >IPO for thirty days. Now I can and do.
>
> The Nasdaq reg (so I am told, and thus must trade by ) is that one cannot
> short an IPO in the first 30 days, apparently some brokers allow this within
> "in house" accounts, how ever with a direct system such as I use I cannot
> short in the first 30 days. Also there is NO margin available on IPO's for
> that time period as well ...... I'm not sure if this is a Southwest or
> Nasdaq reg .....
>
> I wonder how much of a factor this
> >might be.>
> >Does anyone know if my ability is the result of a rule change or some such
> >and thus an important factor to be considered?
>
> I don't know if this is a broker/dealer issue or Nasdaq reg ( I was told
> it's a Nasdaq reg) ...... either ..... can any one shed some light ?
>
> Richard
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