Wednesday, September 26, 2001 1:07:41 PM
HUH??? Yes there is more stock in the market. A short sells something they do not own, which unlike the commodities market where you have to use your own collateral to short. That means somebody (third party) bought it and has a new 100 share long position. That is now 200 further a short borrows that 100 and sells it to someone else (fourth party) and now there is another 100 out in the market now my 100 has grown to 300. and on and on.
That is a pyramid.
Market makers cover their short position by borrowing against the long position of the claering house.
Proud To Be An American Against Terrorism & Its Propaganda!
:=) Gary Swancey
That is a pyramid.
Market makers cover their short position by borrowing against the long position of the claering house.
Proud To Be An American Against Terrorism & Its Propaganda!
:=) Gary Swancey
:=) Gary Swancey
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