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Re: jb1967lbk post# 219910

Friday, 09/29/2006 5:49:06 PM

Friday, September 29, 2006 5:49:06 PM

Post# of 359153
"If the company is a legitimate, money-generating enterprise, then the investor earns a higher return on their capital than they would have otherwised earned without the presence of short sellers ("naked" or otherwise)."

And what about the company that doesn't earn fair market value for their shares and are forced to sell more shares and dilute their companies stock in order to sustain operations due to your short position? That is if the short position isn't the straw that breaks the Camels back by bankrupting the company all together.
I say if the MM or broker doesn't have the money to pay it's bills or buy it's own shares in which to trade then he or she needs to go into another line of work.
What has more risk? Buying real shares with your own money and hopefully reselling them at a price above what you paid for a profit or selling electronic markers that cost you virtually nothing at any price you choose and not having to buy them back until you can do so at a profit.

there is no "objective truth"--only patterns of probability. "Matter" is seen as an illusion of the senses.
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