What is the Short Sale Rule?
According to FINRA Rule 3350 - in order to sell securities
of which you do not own you can only sell on an uptick where
the current bid is higher then the previous sell.
How do you short stocks?
According to FINRA Rule 3350, a stock must be on an uptick
before a stock can be shorted. A stock must also be borrowed
before you can short it. You can view the stocks available
for shorting by going to the Penson website and clicking on their
short list link (Penson
Website). If the stock you want to short is not on the
list contact our trading desk at (909) 396-8899.
Our software platforms will prevent you from shorting a stock
that is not available for shorting. Please note that short
selling carries an additional risk since there is a potential
for the investor to lose up to and more than exceeding 100
percent of the equity.
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