Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Sharkey who wrote (18341)	10/1/1998 12:54:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 29386

Pat, I certainly am not an expert, but I thought the mechanism for shorting is that you have borrow the shares you short from a broker and then cover by buying shares at market price when the stock moves down. I don't know how you convert and then short those shares, that's where I am confused. The company issues stock to cover the conversion, but who loans the shares? Are there brokers that would actually reloan the shares from the conversion - knowing that the holders were guaranteed a low conversion price for more shares to cover with? It seems like an unacceptable risk to the broker. George D.