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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (906)	8/29/1999 10:22:00 AM
From: mst2000	Read Replies (1) \| Respond to of 1438

Thanks for the response - I think I understand how shorting "increases supply" now, at least in "float" related terms - the borrowed shares must be sold, which artificially increases selling pressure (much the same as covering increases buying pressure - except that shorting is timed by the shorter whereas covering may be timed by the lender and will ultimately be timed by the reality of the market for stock and its fundamental value). I still think that, for a major shareholder who acquired conversion rights in a private placement to short a stock it owns a huge position in to drive the price down in order to make its conversions "cheaper" is a risky and perhaps illegal strategy. Thanks again for your input. MST