e.Digital Corporation(EDIG) - Embedded Digital Technology Message Board

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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology

EDIG 0.0001000

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Mar 20 5:00 PM EST

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To: MaryinRed who wrote (12309)	4/15/2000 12:32:00 PM
From: Tinroad	of 18366

Hi, Mary; a few quick thoughts/questions: Not being enamored of shorting, I have looked into its mechanics only in the most casual fashion. Am I right in assuming that a) the brokerage whose shares you short can charge margin-type interest on the borrowed shares that one shorts until they are covered? b) is it almost unheard of to make 100% on a short position (i.e. shorting a stock which subsequently becomes worthless)? and c) is it possible for a short to lose more than he bets if a shorted stock suddenly pops by >100%? If all the above premises are true, why would someone choose that form of investing (i.e. limited upside vs. unlimited risk)? I suppose that people play futures and write uncovered options for the same reasons, but it seems your chances are even worse than Vegas if you're going for big gains.

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