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Non-Tech : Inside Trading
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To: rainman who wrote (55)10/16/1996 7:09:00 PM
From: Guy Gordon   of 62
 
rainman: Short selling increases the supply of stock *for sale*. It does not, of corse, increase the actual number of shares that exist. Only the company can do that.

When a short seller borrows your shares and offers them for sale, that depresses the price. If your shares were safely sitting in your account the buyer would have had to bid more to buy someone elses shares. After all, YOU weren't going to sell them at the current price, were you?
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