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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 94.08+4.3%10:45 AM EST

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To: Matrix_Man who wrote (22347)6/11/1999 8:55:00 AM
From: unclewest  Read Replies (1) of 93625
 
>> If most of the rest of the shares are available, then there is a virtually unlimited supply, until they are mostly in cash accounts. You see, if I buy 100 shares in a margin account, they could be lent to the next guy to short, to another guy who buys them into his margin account where they are again available for shorting. My 100 shares can turn into many hundred's of shares until they wind up in cash accounts, where they become unavailable.<<

matrix,
thanks for that explanation.
question. if the last buyer in your chain puts the shares in a cash account, does that cause a ripple effect and force each shorter using those shares to buy or cover?
unclewest
feel free to disagree with me about anything at anytime.
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