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To: Jan Crawley who wrote (22471)10/21/1998 6:37:00 PM
From: IceShark  Read Replies (1) | Respond to of 164687
 
would you elaborate a little? Thanks.

Jan, If your broker allows you to short shares he is borrowing the shares from somewhere. Usually from other internal customer's margin accounts which have long shares. Sometimes they get loaned stock from an "elephant" as you like to call the institutions. -g-

If the broker loses those long shares for what ever reason, customers sell the long shares or the loan of shares is called back by "elephants", the broker has to cover some shorts or find new long shares to borrow. If they can't find a new source to borrow shares they start to call their short customers like Peter and tell them to bend over and get ready 'cause you are covering today, K-Y Jelly or not.

The only minor issue as a short customer is how the broker makes the selection on who gets screwed. This doesn't happen often, but if there ever was a stock it would happen with, this is it.

Also, eliminating shares from the pool of short lending is a classic tactic in a bear/bull battle to squeeze the shorts. Is that a light bulb that just went on? -vbg-

Regards, IS