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Re: dapro post# 5822

Thursday, 06/14/2007 6:55:55 PM

Thursday, June 14, 2007 6:55:55 PM

Post# of 22174
I saw a show on Bloomberg a few weeks ago about that and of course the CEO of Overstock.com was on explaining how there's something like 40% of his stock is undeliverable. That means that if you bought all the stock available, 40% of it couldn't be given to you if you pulled it out in certificates. Basically, it means there's 40% more stock being shown as out there than exists, which means that someone has sold it into the market but they sold shares that don't exist, hence, naked short.

This rule could have the effect if he's right about the number of pushing his stock up substantially as those naked will be forced to cover.

This is a GOOD thing. A-hole short hedge funds.
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