How can NASDAQ-100 Index Tracking Stock be sold short?
NASDAQ-100 Index Tracking Stock may be purchased on margin, generally subject to the same terms that apply to common stocks. You should contact your broker regarding initial and maintenance margin requirements. NASDAQ-100 Index Tracking Stock, unlike common stock, is exempt from the rule that requires shares to be sold short only on an “uptick” (i.e., a last sale price higher than that of the security s preceding last sale). Thus, NASDAQ-100 Index Tracking Stock may be sold short on a downtick – a key feature for active investors. Note that investors are required to make arrangements to borrow securities before selling short.
