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To: Lane3 who wrote (2329)	9/15/2001 11:43:53 AM
From: Poet	Read Replies (1) \| Respond to of 51710

When you sell a stock short, you are borrowing someone's shares at the current price and holding onto them in hope that the share price goes down. Then you buy shares at the lower price (to close your trade) and return the borrowed shres, You keep the difference. It is the second half of the short transaction, the buying of shares at a lower price, that increases liquidity. If a stock goes up after one shorts a stock, every point it rises is a loss to the short. Since shorting is done on margin, once the trade reaches a certain level, the brokerage may call the short and demand a cash infusion or liquidation of stock in the account, payable in three days (known as a margin call). This also increases liquidity.

To: Lane3 who wrote (2329)	9/15/2001 1:43:21 PM
From: bonnuss_in_austin	Respond to of 51710

kholt: Are you thinking that shorting particular... ...equities causes the overall market to 'go down?' Or what? I'm not sure how you are equating 'selling,' -- going short, in other words -- as a direct influence on general market (DJIA, Nasdaq 100, S&P, etc) movement. Or are you referring simply to selling equities owned? i.e. I own 1000 sh GE. If I and many others like me flood to sell first thing Monday a.m., what will that do to the price of GE stock -- and further, what impact would it have on overall 'market' -- in this case, the DJIA. 'Selling short' has no impact on overall markets, necessarily. It's simply the fundamental 'bet,' same as on buy sides of things, that the equity -- regardless of the general market/indexes -- will, at some point in the future, go down, instead of up. Do you remember all of the stories about investors -- commercial institutions as well as retailers -- losing huge shorting the 'net bubblers' such as AMZN in '99? I'm not sure I know precisely the information you seek in any case, but I'm confused as to your definitions of 'selling.'