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Technology Stocks : The New QLogic (ANCR)
QLGC 16.070.0%Aug 24 5:00 PM EST

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To: Eleder2020 who wrote (18801)10/25/1998 7:17:00 PM
From: Technocrat  Read Replies (2) of 29386
 
The reason why these short-selling scenarios never made sense
to me is because I know that the stock market is a "zero-sum"
game (as in "The Theory of Games and Economic Behavior", which
von Neumann wrote in collaboration with the mathematical
economist, Oskar Morgenstern). For every buyer you have to
have a seller. If somebody makes a lot of money, another must
lose it.

How could a short seller be able to negotiate trades
where he makes money coming and going? What chump would
take the other end of the action? That would be like betting
on sports games after the final scores.

Now the dilution causes complications, but there has to
be a rational strategy of conversion. It is very unusual
to see an oscillatory behavior which creates a maximum
yield integrated over time unless there is an inherit feedback
mechanism.

Maybe I am just too dense to grasp the magic...
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