LaShark: Theoretically, in a normal short situation they NEVER have to cover, they can keep coming up with money to be in compliance with margin requirements.
However when you call for certificates, when the last certificate is sent that is allowed to be sent. ie..say issued 10,000,000 and 10,000,000 are sent out...then the 10,000,001 certificate must be bought in from the market.
That is when the effect of the "call for certs" campaign kicks in.
The price will rise until it reaches a point where someone who has certificate in hand is satisfied, and he sells, enabling the person who wants that 10,000,001 certificate to be made whole.
Unfortunately, unless the people that are doing the campaign are "seasoned pro's" it's usually a futile effort.
I believe but I am not sure, that
the presstek squeeze was started by a cert campaign done by Cabot.
This was done by them on the QT.
You would have to research this to be sure
and I apologize to the thread, if this info is incorrect concerning Cabot and the calling of certs.
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