Global Digital Solutions Inc (GDSI)

[fojcol]

A note about how the MM's sell short: When there's not a lot of retail that wants to sell shares, the MM's step in to keep the trading smooth and liquid. For example, say the last trade was .008, and then the next retail ask isn't until .0089. That's when the MM's step in and sell at .0081, .0082, .0084, etc. Those shares are sold short, because the MM's don't have those shares, they're just selling to make the move up (or down) less volatile...more smooth. Then the same goes for the ask price, and this is where the MM's will make $$$, because what they sold at .0082, for example, they'll buy back at .0079 (and vice versa). So most of those short sales are covered fairly quickly during the day. They can get "caught" when there's a quick run up, but they usually make it back up when the price drops back down, even if it's only to regroup for the next leg up.