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learner1156

03/26/12 9:35 AM

#115564 RE: d0lphint0m #115556

Is it not true that ANY short sale increases the number of shares in circulation - until the stock is delivered? E.g., a company has 100,000,000 shares. You sell me 1,000,000 shares via a short sale - at that point there are 101,000,000 shares in circulation. Later, the price drops, and you purchase the 1,000,000 shares and deliver them to me. Now we are back to 100,000,000 total shares in circulation.