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To: Lane3 who wrote (2336)9/15/2001 12:14:04 PM
From: Poet  Read Replies (1) | Respond to of 51710
 
To my knowledge, shorting does NOT make the stock go down. People can only short to the extent of their own margin capability and the availability of shares to short.

A short trade is closed by a buy of the stock.

WRT this statement:

can you tell me why I'm mistaken and the market going down along with the towers is a good thing?

Are you under the impression that I want the market to fall like the WTC towers?



To: Lane3 who wrote (2336)9/15/2001 2:34:26 PM
From: briskit  Read Replies (1) | Respond to of 51710
 
Maybe one way to look at it is that shorting insures buyers, albeit at a lower level (they hope). Without shorts you are not insured buyers, so shorts increase liquidity when other buyers are hesitant. Without those buyers stock prices might go much lower, in theory, without someone willing to step up with more capital to buy.