InvestorsHub Logo

spurcon

12/13/06 10:27 PM

#23791 RE: Jim Bishop #23777

So, if I wanted to short MSFT.........
Could I short them in a box?
Could I short them with a fox?
Could I short them here or there?
Could I short them anywhere?
Could I short them down then up?
Tell me, tell me, Jim Bishop!

4Godnwv

12/13/06 11:06 PM

#23809 RE: Jim Bishop #23777

Jim in a earlier post you made what I assume was direct quote -
-------------------------
In their own words re Ameritrade:

"Ameritrade does not trade on its own account or make a market in any security. Client trades are executed on independent exchanges, through independent market makers or through ECNs."

-----------------------
Trying to understand this shorting thing. Ameritrade (and I'm guessing other online brokers) use market makers to execute the trades, but they will 'loan' someone who wants to short a stock (say MSFT) shares from their own inventory, or if needed from another clients (our fellow traders) account.

Is that right?

Assuming it is, what if I want to sell 10k MSFT and TDAm doesn't have any in their inventory, and none of their clients do either? (unlikely I know, but what if...)

Where do they get the shares? Does a market maker get them from another broker? i.e. He buys them and then sells them to my broker?