1. Traditional Short Sale: Borrow the stock against a fifty percent margin.
This is the only type of short sale that can be squeezed when the share
price moves up because the short seller must add money to their margin
account.

2. A Market Maker Short Sale: U. S. Market Makers are not required to make
physical delivery of stock certificates when they sell it. They are assumed
to be a repository of the company’s shares.

3. A Brokerage House Short Sale: This is a decision not to execute a buy
order from a client, but show the stock as owned by the client on their
monthly brokerage firm account statement.

4. A Clearing House Short Sale: The Clearing House doesn’t execute the buy
order, but credits it to the brokerage firm client’s account.

5. A Naked Short Sale: This is where steroids bodybuilding two brokerage firms agree to trade
stock in a company with neither brokerage firm requesting physical delivery
of the share certificates.

6. An Insider Short Sale: This is when insiders with restricted stock use
it to sell short their company. It’s illegal. It was a common practice when
the Regulation S Hold Period was 40 days.

7. A Ferrari Short Sale: This is where a bloc of stock is purchased. The
stock is converted to derivatives, thus factoring the stock one hundred
fold or more. The short sale doesn’t occur in the Stock Market, but the
derivative owners are holding a short position.

8. The DTC Short Sale: This is when Depository Trust Companies use the
stock they hold to sell short that stock.

9. The International Short Sale: Stock’s created offshore. The company is
listed to trade outside the United States (usually Canada). However the
company is trading in the States. The shares are sold into the States. The
Short Sale is moved to the Primary Country, where the local brokers can
ensure that the short position will be covered by the listed company, if
there is ever a successful short squeeze.