Replies to post #44259 on CMKM Diamonds Inc (fka CMKX)

[average investor]

Let me use simple words.

100 real shares of a stock out and available for normal trading at $1.00 for market cap of $100

Short sell 10 shares at $1.00 per share (total $10.00)

Now there are 110 shares out in the world.

Real Market cap of $100 now divided by 110 shares = new DILUTED share value of $.9090 instead of original $1.00

100 REAL shares now only worth $90.90 share valuation goes down because of SHORT DILUTION

Short can now buy those 10 shares back at $.9090 per share (total $9.90) for a profit to the short of $.10

And now value of real shares after dilution is now $.9090 instead of $1.00

That should be simple enough.

SHORTING is BAD!