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Re: Mercator21 post# 90686

Wednesday, 08/31/2016 6:19:01 PM

Wednesday, August 31, 2016 6:19:01 PM

Post# of 426315
Mercator and bb...

I think I get it...finally. I was viewing short sell covering as a monetary transaction and I see that is not always the case. Since "selling short" involves borrowing the shares, then obviously an alternative to paying for the increase in share price, is simply to replace the shares if you happen own shares; which is the case after the conversion..

So I was wrong in this case and understand this makes the likelihood of a short squeeze much less likely, because covering the short shares with shares you own is a market neutral transaction..

I do understand the term.."Selling short against the box"...

Sorry for all the confusion..

":>) JL
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