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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: eWhartHog who wrote (2914)	4/22/1998 11:55:00 PM
From: Ira Player	Read Replies (2) \| Respond to of 4969

I agree, there is a practical limit. At any instant in time, there can be no more than the real float available to shorters. Any stock that is bought (or transferred) into a cash account is off limits. The issue is regulatory methods that prevent the effect. The negative effects of the apparent increase in float is simple. If, (as in this example Message 4138258 ) 75% of the holders decide to hold firm, (or worse yet, move the shares to a cash account) some of the shorts will be called, and with only half the shares required available, the price is going to go up hard. That, in my opinion, is a good part of the leverage seen in a short squeeze. Enjoy the ride, (last couple of days it's been wild) Ira