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Re: Harry1969 post# 331333

Wednesday, 11/18/2020 2:14:12 PM

Wednesday, November 18, 2020 2:14:12 PM

Post# of 701425
If you lend your shares to someone who wants to short the stock then that will increase the selling pressure on the SP hence the SP will go down. The short seller holds the opinion that he can buy the stock back against a lower price later and make a profit. Or as some say if these are warrant holders then they will convert the warrant on Dec 15 for a SP far below $ 1 and then deliver the shares to the owner he borrowed the shares from. This way he locked his profit in.

Now we longs don't want those shorts because they are selling stocks they dont own and pressing the SP down.

Ok now lets say a short is 100,000 shares short and sold at 1.3
TLD has announced SP jumps to 3.5 now this short has to buy back on the way up to 3.5 what he sold at 1.3. If a lot of shorts have to buy back shares fanatically to limit their loss in a short period of time and there are not many shares available then that is a short squeeze.

I hope this explains it a bit better : )
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