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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Riley G who wrote (51456)	8/13/1998 11:20:00 PM
From: Kurt N	Respond to of 55532

LOL at your BS and how wrong you are (or whoever emailed you that) >>If you think your broker has to sell your shares for you if there are none available to be traded you better read the fine print in your contract with your brokerage firm!!! It will tell you that if a stock can't be traded or the order can't be filled they are not liable and you have to wait until they can get shares. What do you think they will do, short naked and sell them for you???<< Kurt ================================================================ Informal Proof Assumption 1: RMIL resumes trading on the OTC-BB (this is still a mighty big if, but I'll let it go for the moment). Assumption 2: There is a huge short position in RMIL and the shorts are forced to cover. (also debatable). Assumption 3: MM's/brokers are most certainly not willing to have a naked short position, and if not short themselves wanting to buy RMIL as well (along with DayTraders and others wanting in on the action). Assumption 4: RMIL buy order was settled (funds taken out of account, shares are in account). This is the case for everybody who bought this stock pre-halt. Proof: Somebody is eager to buy (short/short MM or Daytrader/non-short MM). [assumption #2 & #3] In order for a market buy order to be filled there must be a corresponding market sell order. The alternative would be for a MM to simply naked short the share, but that is conflict with assumption #3. In order for a buy to occur (which must happen) there must be a corresponding sell. Client(s) places sell order(s). Broker goes to MM which buys the shares at the bid, MM now has shares to either help cover his short OR to turn around and sell at the ask (pocketing the difference). When the brokerage sells the share to the MM at the bid, they have a short position which is offset by the shares that are held long in the account. They do not have a naked short position, rather the brokerage would have a flat position. No risk to them at all, regardless of the price move. Kurt