Zion Oil & Gas Inc (ZNOG)

[bdahl385]

There is nothing wrong with legal shorting of stock - I do wish they would bring back the uptick rule though to keep potential overly shorted stocks from being routed (bear raid)... When done legally, a shorted stock is borrowed from an actual owners account and is sold as a normal transaction. Your statement still shows you own the stock but the cert. # is actually sold to the new buyer. When the short covers their position, the computers replace your borrowed stock with a new cert. # into your account and you never knew it was gone. If you don't want your Zion shares to be shorted, then take physical delivery of the certs, they can't short them if you have physical possession. When you keep securities in street name at a broker, you usually give them the right to borrow any of your positions w/o your direct knowledge.

All it takes is for some good news on a stock to crush the shorts and turn it into a short covering rally where you could see a stock double in a day. Believe me, when Zion announces they have struck a commercial oil well, those shorts will wish they had never taken that position...