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To: TraderGreg who wrote (2005)11/29/1997 4:20:00 PM
From: David Smith  Read Replies (2) | Respond to of 11708
 
As certs continue to be received, shares shorted must be covered from an ever decreasing active float.

It is VERY similar to musical chairs. Remember how that goes? Decrease the available certs (chairs) by calling for them and the remaining larger shorted float (people) will be searching for fewer certs (chairs). Eventually, there will be almost no certs (chairs) available and the shares chasing it (people), who will be out of luck (or will pay a stiff price).

David Smith