Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 170.90

-1.3%

3:59 PM EST

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To: rkral who wrote (145230)	10/1/2006 12:58:37 PM
From: lml	Read Replies (1) of 152472

How is that neutral position better than just having sold it all? Selling 1/2 a position & shorting the balance is NOT a neutral position. It is clearly a net short position, & it is a bit different then selling the entire position. Selling is not really a position, as there's no attendant obligation to repurchase at some future date. Proceeds are deployed into a "cash position." However, it does not rule of the possibility that such proceeds could be deployed again to re-establish a long position. Alternatively, the cash can be re-deployed into ANOTHER position. In contrast, shorting, is a position in the stock as there's an attendant obligation to repurchase the shares at some future point. No cash position is established. Instead, you're selling borrowed shares from another with the obligation to repurchase them & return the shares to the original owner, hopefully at a lower price, & therefore pocket the difference. Here, the cash raised is obligated to be used to "cover" the short position.

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