SI
SI
discoversearch

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.
Microcap & Penny Stocks : nhmcf
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: R. Brinks who wrote (612)7/22/1998 7:49:00 AM
From: Dr. Harvey  Read Replies (1) of 702
 
Re: Shorting,

whiule the stock may not be shortable by the general public, it is most certainly shortable by market makers. This is the problem. If a MM shorts the stock to a retail buyer at let's say 2 1/4, and the stock then falls to 1 7/8; where is his incentive to cover?

While this is not the only scenario, it is my understanding that many market makers get short stocks because they are required to fill a legitimate but order, but when the stock begins to fall, they hold the short for more profit.

These guys get paid by profitability of the trading desk. It is in their best interests to stay short a stock that is weak.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News