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Politics : America Under Siege: The End of Innocence -- Ignore unavailable to you. Want to Upgrade?


To: Qone0 who wrote (5533)9/28/2001 7:08:57 PM
From: marcos  Read Replies (1) | Respond to of 27666
 
'When you covered at 3PM you increased the amount sellers needed for buyers of the stock to buy at the same price you covered at.'

Huh? ... perhaps you could explain this

... oh, and - where is the relevance therein to the topic of the thread? ... tia



To: Qone0 who wrote (5533)9/28/2001 7:10:17 PM
From: joseph krinsky  Respond to of 27666
 
Bob- Under certain circumstances* you could be correct, but remember once the stock is in the float, no money goes to the company, it doesn't do anything other than change hands, from one person to another.

Where it hurts is that it creates shares, diluting the prices, which in turn makes things "cost" more if they want to use stock for acquisitions, or if they want to sell stock to raise capital. (a lower price means they have to issue more stock)

*IPO's, new issues, basically new stock that the money goes to the company. when a stock is shorted then, it siphons off money that would go to the company.