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To: Wes Stevens who wrote (17888)9/23/2001 10:40:20 PM
From: Mathemagician  Respond to of 208838
 
<Deleted...sorry>



To: Wes Stevens who wrote (17888)9/23/2001 10:49:33 PM
From: Mathemagician  Read Replies (1) | Respond to of 208838
 
It may not technically increase the float, but it has the same effect.

It has the same effect in that share prices tend to be lowered. However, increasing the float results in permanent dilution and a long-term depression of prices. Shorting on the other hand results in a short-term depression of prices, and often a disproportionate rise in prices later. It is a rare case where shorting actually damages a company. In fact, in order for a company to be truly damaged by shorting it must be a marginal business anyway, desperate for cash and without good news (i.e. suspect business model). Any company that is successfully executing a sound business plan should have enough ammo to make shorting a temporary irritation at worst.

M