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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Wes Stevens who wrote (62594)	1/13/2000 8:54:00 PM
From: JoF	Read Replies (1) \| Respond to of 108040

Wes, I want to thank you, in front of god and the world,for clearing up the shorting of shares for me. I have been under the illusion that those shorted shares never were sold, but they are. There are shares available through a central "wharehouse" available to the brokerage companies. I just found this out. <ggg> The shares are sold when the shorter borrows them. That is why the price of a stock will go down because if the short position is significant the market is flooded with what appears to be folks selling, in earnest, when in reality those are shares that will be bought back at a lower price. THE LIGHTBULB WENT OFF!!! Thank you so much! The mystery is solved! I cannot begin to tell you how many people, like myself, believed that those shares belong to people who have a long position. They are not! Hopefully, this discussion has helped someone else besides just myself understand the mechanism of short selling. Thanks again, ignorance is not bliss! No wonder people just hate the short sellers! All this time I just thought it was because the shorts were being negative. But the shorter is actually causing that stock to drop in price which in turn will encourage others to sell their shares...ahhhhh, the panic selling! The stock price drops! Too much! Now with my new found wisdom I would like to encourage all the shorts on WFII, KOREA, PFSW & QNTS to cover ASAP. I would like to sell my shares in earnest at a profit! <GGG> Thanks again & happy trading to you! ;) Jo