No shares available for shorting?

Here2learn · Sep 22, 2009

What does it mean if my broker (Scottrade) gives me a message that reads "Currently, there are no shares of BAC available for shorting."

Got this shortly after open this morning.

Was it the stock conditions or the broker service that caused this?

Petro · Sep 22, 2009

It means they don't have anymore shares to lend out.

Here2learn · Sep 22, 2009

Would this be different with a larger broker?

Petro · Sep 22, 2009

Yeah, larger broker would have access to more shares

Petro · Sep 22, 2009

Yeah, larger broker would have access to more shares

southbeach4me · Sep 22, 2009

Remember that with a larger broker, its "more likely" that you'll find the shares to be loaned to you, its NOT a guarantee that you will.

Petro · Sep 22, 2009

Yup, and even if they do loan them to you, if it's a tough borrow, they're going to charge you higher rates.

tradefreak · Sep 22, 2009

the don't want to get busted for naked short selling...

daytrader2010 · Sep 22, 2009

also, some brokers are known for having a better selection of stocks to short.

BAC is not a penny stock, but if you ever want to short a penny stock many brokers will not let you short them at all.