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Re: flatron post# 17479

Thursday, 06/07/2018 10:36:04 PM

Thursday, June 07, 2018 10:36:04 PM

Post# of 54153
Yes. Can you imagine if they, say, shorted 1000 shares at $4/share on May 15th. If good news is announced on July15th that MJ#1 is commercial such that the stock opens on July 16th at $40/share, the shorter would lose $36,000. (They, in effect, borrowed 1000 shares from their broker, sold those borrowed shares for $4/share, then had to buy them back at $40/share and give back to the broker the 1000 shares they originally borrowed). You can imagine the panic that will take place among those who are sort the 4 million shares the day MJ#1 is announced as being commercial.

BTW - this is what Tisdale was referring to earlier. You can call your broker and instruct him not to allow your shares to be loaned out for shorting
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