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Re: liable post# 6432

Thursday, 03/22/2007 1:48:33 PM

Thursday, March 22, 2007 1:48:33 PM

Post# of 34706
depends actually. see stocks within the DTCC when they experience a change like that they have a defualt policy and thats to order anyone that has a short to cover. Literally the computer sends the demand out. Also usually a change such as that involves counting all of the shares in circulation which means the shorters are cuaght no matter what. I have been in a few heavily shorted stocks on the AMEX where all of a sudden they are forced to cover. I cant say i have honestly seen it ever truly succeed down here int he pinks though. Either way if the CEO is doign what he says he is doing then the people in this stand to make alot of money. Its a risk versus reward. ANother factor is what if its a small brokerage firm that has done most of the shorting? and they don't have the money to cover! That can often be the case. People live in a dream world where the ball game is fair but it isnt.