short sale accounts to have 150% of the value of t
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Posted On: 06/29/2017 8:49:56 PM
short sale accounts to have 150% of the value of the short sale at the time the sale is initiated
Maintenance margin requirement rules for short sales add a protective measure that further improves the likelihood that the borrowed shares will be returned. In the context of the NYSE and NASD, the maintenance requirements for short sales are 100% of the current market value of the short sale, along with at least 25% of the total market value of the securities in the margin account. Keep in mind that this level is a minimum, and it can be adjusted upward by the brokerage firm. Many brokerages have higher maintenance requirements of 30-40%. (In this example, we are assuming a maintenance margin requirement of 30%.)
http://www.investopedia.com/ask/answers/05/sh...ements.asp
by my calculations the weighted average of the shorted shares is at roughly 1.42, so no great shakes if the shorts would cover here and go long and enjoy the ride with the longs
but if they continue to press the shorting, I agree it is like playing with fire, not sure how soon Dr Lebby will drop a news release of substance, and I agree the the pps could easily rise a buck in a single day, for example, our friends at IBM want to JV a project with us and provide funding, perhaps even a small percentage stake, what then for shorts?
tough call, but this "chasing the tail" rhetoric games are quite a bit transparent and really easily seen to be "grasping at straws" for anyone who has been around LWLG for some length of time, might fool the newbies, but then I doubt many newbies have many shares to give back to the shorts
anyways, would prefer "one team" and everybody wins, this is my olive branch to shorts that they cover now and make their profits long!
#DISRUPTTHIS
Maintenance margin requirement rules for short sales add a protective measure that further improves the likelihood that the borrowed shares will be returned. In the context of the NYSE and NASD, the maintenance requirements for short sales are 100% of the current market value of the short sale, along with at least 25% of the total market value of the securities in the margin account. Keep in mind that this level is a minimum, and it can be adjusted upward by the brokerage firm. Many brokerages have higher maintenance requirements of 30-40%. (In this example, we are assuming a maintenance margin requirement of 30%.)
http://www.investopedia.com/ask/answers/05/sh...ements.asp
by my calculations the weighted average of the shorted shares is at roughly 1.42, so no great shakes if the shorts would cover here and go long and enjoy the ride with the longs
but if they continue to press the shorting, I agree it is like playing with fire, not sure how soon Dr Lebby will drop a news release of substance, and I agree the the pps could easily rise a buck in a single day, for example, our friends at IBM want to JV a project with us and provide funding, perhaps even a small percentage stake, what then for shorts?
tough call, but this "chasing the tail" rhetoric games are quite a bit transparent and really easily seen to be "grasping at straws" for anyone who has been around LWLG for some length of time, might fool the newbies, but then I doubt many newbies have many shares to give back to the shorts
anyways, would prefer "one team" and everybody wins, this is my olive branch to shorts that they cover now and make their profits long!
#DISRUPTTHIS
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