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Strategies & Market Trends : From the Trading Desk

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To: Ira Player who wrote (2889)4/22/1998 10:13:00 PM
From: eWhartHog  Read Replies (1) of 4969
 
>>Please explain any mechanism for preventing shorting "an infinite loop".>>

I think a practical limitation on an infinite shorting loop would be that on each succeeding round less than 100% of the stock will be placed in margin accounts and be available for shorting. Some proportion of stock is purchased by pension plans and other cash accounts and lending of this stock may not be allowed. Some stock is registered and placed in safe-deposit boxes.
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