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Technology Stocks : Loral Space & Communications
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To: Timothy R. Tierney who wrote (7161)1/2/2000 9:33:00 PM
From: Bernard Levy  Read Replies (1) of 10852
 
Shorting temporarily increases the float
of the stock, since if you borrow 100
shares from holder A and sell them to holder B,
both of them think they hold 100 shares, for
a total of 200 shares.

Incidentally, this is exactly the same phenomenon as
the multiplier effect in creating money through bank
loans. If you have a $100 in the bank, and the bank
loans it to one of its customers, then $200 are now
in circulation.
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