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Re: A deleted message

Saturday, 12/15/2007 10:37:14 AM

Saturday, December 15, 2007 10:37:14 AM

Post# of 115222
Yes, it's the same! Thoose who sold the shares are responsible! With a done buyout the brokers have to pay and to balance their accounts.

What you just described is called a "short trap". You own all shares and thoose who failed to deliver and the short positions are trapped because they can't balance their accounts. There are no shares available to cover!!! Worst case scenario for "Shorts"!!!

Longs: In therory a long can loose only 100% of his investment but is able to win unlimited.

Shorts: In theory shorts can win 100% and loose unlimited.

Normaly both situations don't happen very often and I doubt that millions of shares are short or even naked short but that would be great for longs!! Who knows??? (The TA???? - I think so)

Shorts may come in very dangerous situations and that's the reason why german brokers don't allow to short Pinksheets but the Market Makers are able to short big!!!