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Technology Stocks : RadiSys Corp
RSYS 1.720+0.6%Dec 11 4:00 PM EST

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To: Ed Forrest who wrote (656)5/1/1997 5:19:00 PM
From: D.J.Smyth   of 1472
 
The makers justify a wide spread as an attempt to stop the shorting, i.e., if you short at $29 1/4 the ask must go below $28 1/4 before begin to make money. When more animals are shorting stocks, the spread tends to widen, when less are shorting, or covering is occurring, the spread tends to decrease. Of course, the options, play a significant roll here as well. A more human explanation would be - hey if they can get away with a large spread - go for it. And they do.
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