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Tuesday, June 12, 2007 4:07:18 PM
In theory yes.....in the long run. It all depends on what actions he takes to handle the shorting.
Example:
I own a company who trades at .50/share then shorting begins to occur illegally. brings stock down to .30 or something. So thinking I need to take these guys to court I have to figure out how to get 100,000 dollars in legal fees and such. So I raise the share count so I can sell off some shares to take these shorters to court. But not realizing that in order to get that $100,000 I unintentionally drove the share price to .005 or something of the sort. all in an effort to stop illegal short selling.
Thats just an example.
:)
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