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Re: PSU07 post# 5340

Thursday, 01/31/2008 1:54:24 PM

Thursday, January 31, 2008 1:54:24 PM

Post# of 27567
Shorting is when someone sell's shares they do not own, on the gamble that the price is going down. They then "Buy" those shares at a lower price and pocket the difference. If the stock rises they lose money. Also when a stock becomes severely shorted, (not the case here, yet) a good PR or Judgement can make the price skyrocket, why because if there is a cash disbursement while you own a short stock then you have to cover that out of pocket. So before that happens people will try and cover, but smart traders will make them pay for it, forcing the price of the stock up.

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