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To: Susan Saline who wrote (14585)6/6/1998 4:13:00 PM
From: Susan Saline  Respond to of 53068
 
a very good explanation on shorting and short squeezes...
for those of us ... who are the easily confused ...

To: +Diamond H (23565 )
From: +Big Dog
Saturday, Jun 6 1998 4:05PM ET
Reply # of 23568

DH -- A person shorting a stock sells the stock. The more sellers you have the lower the price goes. Supply and demand. But eventually the short sellers have to buy back the stock to cover their position. If this happens in a hurry, the result is every long holders deee - light, a SHORT SQUEEZE. Then all the short dudes (not you wedge) are scrambling to buy stock to cover and this causes the price to jump up.

big