From the Trading Desk Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : From the Trading Desk

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: eWhartHog who wrote (2914)	4/22/1998 11:55:00 PM
From: Ira Player	Read Replies (2) of 4969

I agree, there is a practical limit. At any instant in time, there can be no more than the real float available to shorters. Any stock that is bought (or transferred) into a cash account is off limits. The issue is regulatory methods that prevent the effect. The negative effects of the apparent increase in float is simple. If, (as in this example Message 4138258 ) 75% of the holders decide to hold firm, (or worse yet, move the shares to a cash account) some of the shorts will be called, and with only half the shares required available, the price is going to go up hard. That, in my opinion, is a good part of the leverage seen in a short squeeze. Enjoy the ride, (last couple of days it's been wild) Ira

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next