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Re: eelfland post# 76032

Saturday, 09/16/2006 12:26:19 PM

Saturday, September 16, 2006 12:26:19 PM

Post# of 311080
Right, I see your point... I'm new and make incorrect assumptions. Shorters borrow money on anticipation that a stock will decrease in value so any increase would be bad. For example, if a shorter "buys" a short position of 100 shares at $10 per shares and is lucky enough to sell the shorted stock at $8 per share then he just made $200.

However, the scary thing for a shorter is if the stock sky rockets to $100 per share then he has to come up with $10,000???

What happens when they all just run out of money and declare bankruptcy? Do we still get our money!?!?

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