Re: Number of Share Holders of Record arkie.. mr. burns..
in response to
by
posted on
Sep 12, 2007 08:57AM
arkie... I see that has been responded to. If everyshareholder requested delivery of the shares held then the number of shareholders would increase significantly... and then leave fewer shares to short... which leads me to
"Also, I guess you don't agree with others that this stock can't be shorted."
Not at the retail level. But the market makers can sell shares they don't have all day.... they will fill orders as the buy orders come in on the penny stocks not worries about getting the shares back as someone is always willing to sell especially on thin volume.
Since these stocks are "traded" on lower volume, any significant order IF a MM could not sell to a buyer by selling shorted shares would leave wild swings in share prices daily... you can figure it out... literally hundreds of percent swings, so the MMs ability to short stocks at these levels does serve some purpose on penny stocks.
Problem is, you can't keep a good stock down forever. And as a MM you will have to find a way to gracefully exit your short position without losing your bonus at the end of the year.
BTW, some may think that by the tone I detest MMs. Not quite true, you just have to consider the role that they play in creating a market for the stock, and how they operate. Just remember they WANT your shares and be aware of the way closing prices can be posted for you to think that it's time to sell.