Links to Learning

[Mikey]

re:SHORTING SUBPENNY STOCKS, INTERACTIVE BROKERS: FAGETABOUTIT

Subject:Re: hello, i am interested in opening a new account
Date:11/2/2007 1:04:19 P.M. Eastern Daylight Time
From:[e-mail]
Reply To:
To:[e-mail]
CC:
BCC:
Sent on:


Sent from the Internet (Details)




Dear Trader,

1. IB accounts are insured by SIPC and Lloyd's of London. Customer securities accounts at Interactive Brokers are protected up to $30 million (including up to $1 million for cash). For details on investment protection please see the IB website, www.interactivebrokers.com, Accounts/Account protection.

2. You can trade penny stocks. For a list of available shortable stocks please check the IB website, www.interactivebrokers.com, Trading/Products/shortable Stocks.

3. Details on margin are available under Trading/Margin/Futures.

4. US residents are able to short stocks.

Short Marginable Positions:
If last sale price/share >=$5, then maximum ($5 per share, 30%*stock value). If last sale price/share < $5, then maximum ($2.50 per share, 100%*stock value). Short sale proceeds are applied to cash and the short position value is subtracted from equity.

If you have any further questions, please feel free to contact us again.

Regards,

Ayana F
IB Customer Service

******************************************************************************************************

INTERACTIVE BROKERS WILL DISCONTINUE DIRECT EMAIL SUPPORT IN THE
NEAR FUTURE. Inquiries and service should be accessed using the web based
INQUIRY/PROBLEM TICKET SYSTEM
located inside Account Management.
Please note that email receives the lowest priority of our various service solutions.
For more information on how to get the fastest service from IB, please refer to:
http://www.interactivebrokers.com/en/general/contact/bestService.php

******************************************************************************************************

[e-mail] wrote on 10/26/2007 03:38:19 PM:

> i have some questions:
>
> if i deposit $10,000,
>
> 1. is my money safe? i am resident of the u.s. and are my funds protected?
> 2. can i trade(short) penny stocks using your company? specifically
> a stock that is trading at say, .003
> 3. what are the margin requirements to short said .003 stock?
> 4. is this legal to do for a u.s. citizen?
> 5. if $10,000 is not enough, what is the minimum amount required
> for me to open an account to be able to short sell subpenny stocks,
> or even $.50 otcbb or pinksheet stocks.
>
> i presently have several accounts, none of which allow me to do any
> of the above. make me happy, and tell me you can accomodate me, and
> i will wire you the necessary funds on monday!
>
> again, let me be very specific, i want to shortsell otcbb and
> pinksheet stocks under $1.00 u.s.
>
> i eagerly await your answers.
>
> thanks
>
> mike
>

__________________________________________________________

THIS IS NOW A DEAD ISSUE, AND I HOPE TO HELL I NEVER SEE THE "SHORT" BS AGAIN........IT CANNOT BE DONE LEGALLY IN THE U.S. FOR LESS THAN $2.50 PER SHARE MARGIN REQUIREMENT.......END OF STEENKING STORY!!!!!!!