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Pastimes : Learning To Invest Correctly - A Shared Experience
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To: Patricia Meaney who wrote (146)7/29/1998 8:56:00 PM
From: Druss  Read Replies (2) of 253
 
Patricia--I would not worry about shorting as such.
You put yourself at risk under some conditions if you take physical possession of your stock certificates. You may feel the need to move very quickly to take advantage of or to avoid conditions arising in on of your investments. Having the certificates in your possession could mean significant delays and losses.
There is an irony too in that if a stock is not heavily shorted you will have no impact on the shares available for shorts to borrow, if the stock is heavily shorted you should probably sell. Modern research has shown that one of the most bearish indicators a stock can have is a large short position. The correlation between a large short position and a subsequent significant drop in share price is very high. Shorts are market sharp individuals who will have studied a company they are shorting very carefully, they will have found something they like before initiating a position.
All the Best
Druss
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