richard, the reference to the market maker theory is that market makers trade among themselves to create the image of volume and price movement... its a silly thinking process in most cases except in an out and out fraud set up..that is a different thinking process story. back to prln.. no one has to buy or sell to create any thing. its a two buck stock ..period. it moves, again folks, because it has something.. what? look at the clinical trials results. think it thru for yourself. i am not a bio person.. now to the shorting.for fun, suppose... suppose you were selling your company to someone else at a fixed price, over time. suppose you needed cash for any reason, no reason.. suppose you shorted a stock at 2.25 and could buy it at , say 2.75 over time. if the deal goes fowrd, you have several hundred thousand shares to sell at higher prices, if it fails, you shorted at 2.25 and got some cash in your pocket. what to lose? peanuts to this person.. also, suppose you bought the warrents at, say 1/2 or fifty cents. suppose you short at 2.25 and could convert at 3.25 at a future date. suppose stock would go down , or, it would rise. then, if its down you make money with the short. if it rises, cover the short and lose this money, but collect on your rest of shares/ need more examples to get the drift? |