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Strategies & Market Trends : Shorting stocks: Mechanical aspects

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To: Banjoman who wrote (116)9/2/1998 11:36:00 PM
From: George Dawson  Read Replies (1) of 172
 
John G, et al,

I would appreciate any theories on shorting a stock in the $1.00 - 1.25 range with a float of 12M shares and a current short postion of 1M shares. The short position has increased lately, despite the fact that UPC-71 was in effect. My understanding of this rule is that there were no other shares available for shorting. There was also a theory that some preferred shareholders might be shorting. All of these theories are foreign to me.

My basic question is whether anybody has a theory of why the short position is increasing - aside from the obvious one, that the share price will go to zero.

More info at:

Message 5659320

All responses appreciated.

George D.
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