Replies to post #12227 on Adaptive Medias Inc (fka ADTM)

[236T568]

What?

of course there is a reason for a funder who is receiving .10 shares to short the stock

if the funder believes that the stock price is going to drop to below .10, then he can short the stock now at .12-.13 and lock in a 20-30% return on the amount loaned, as opposed to watching the stock price dive to below .05 and not convert the loan.

to understand this simple train of thought of a Funder is one of the basics to investing in publicly traded companies that raise funds in this manner

There's absolutely no reason at all for a funder who is receiving shares at a flat .10 to ever short this. It's never going to happen so why bother even discussing it?