Replies to post #149394 on Wave Systems Corp. (fka WAVXQ)

[TonyMcFadden]

When you short you are selling stock you don't yet own (and buy it back at the lower price, hopefully, later), so the question should be "Who has the ability to sell a stock between $2.50 and $3.00 when it's at $2.10 in the open market?"

[29tango]

Snackman,

You short the stock ahead of the public announcement of the financing. Those taking part in the deal know what they are being offered and what the current price of the stock is. For example, if the current price is 2.50 and there are weeks before the financing will close, thats when they short. When the financing is announced at 2.00 and the stock drops like a rock, thats when they cover. If they know they will be part of the deal its not much risk.

Regards,

29tango

[awk]

Snackman: The shares were shorted during the time before the PP was announced.