SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : Tech Squared (TSQD)- Internet Commerce -- Ignore unavailable to you. Want to Upgrade?


To: Sigmund who wrote (2094)8/12/1998 11:19:00 AM
From: M. Frank Greiffenstein  Read Replies (2) | Respond to of 2752
 
Arbitrage anyway...

People who are buying TSQD are in essence arbitraging. Arnbitrage happens whenever there is any discrepancy in pricing between two interrelated instruments. The absence of shorting ability is not necessary to meet the conditions for arbitrage. Shorting only makes the arbitrage volatile.

DocStone



To: Sigmund who wrote (2094)8/13/1998 4:07:00 AM
From: Ojing Eo  Read Replies (1) | Respond to of 2752
 
>> Sigmund on Aug 12 1998 11:14AM EST wrote:
>> The big problem I see is that it is not easy to short TSQD.
>> Paradoxically that hurts us. If TSQD could be shorted, it
>> would be possible to arbitrage the TSQD/DRIV ratio.

No, it's that you can't short DRIV that prevents the arbitrage.
The arbitrage play is sell DRIV short and buy corresponding TSQD.

Ojing.