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for $4000, repay the lending broker and thus cover the short sale, and claim a profit of $1000, or $10 a share. |
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Short selling is regulated by Regulation T of the Federal Reserve Board. The Nasdaq Short Sale Rule prohibits NASD members from selling a Nasdaq national market stock at or below the inside best bid when that price is lower than the previous inside best bid in that stock. |
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Spread The spread for a company's stock in influenced by a number of factors, including: |
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The total number of shares outstanding available to trade |
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Demand or interest in a stock |
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Total trading activity in the stock |
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Stock symbol A unique four- or five-letter symbol assigned to a Nasdaq security. If a fifth letter appears, it identifies the issues as other than a single issue of common stock or capital stock. A list of fifth-letter identifiers and a description of what each represents follows: |
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| A | Class A | | B | Class B | | C | Issuer qualifications exceptions (This indicates that the issuer has been granted a continuance in Nasdaq under an exception to the qualification standards for a limited period.) | | D | New | | E | Delinquent in required filings with the SEC | | G | First convertible bond | | H | Second convertible bond, same company | | I | Third convertible bond, same company | | J | Voting | | K | Nonvoting | | L | Miscellaneous situations, such as depositary receipts, stubs, additional warrants, and units | | M | Fourth preferred, same company | | N | Third preferred, same company | | O | Second preferred, same company | | P | First preferred, same company | | Q | Bankruptcy proceedings | | R | Rights |
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