Let me explain, There are two types of shorts,
Post# of 16816
Posted On: 03/28/2012 9:43:14 AM
Let me explain,
There are two types of shorts, there are the legal shorts and there are naked shorts (which are illegal) these naked shorts are what he is speaking of they are selling shares that do not exist. If Matt was to do a mandatory cert switch by creating a new class of commons, they would be forced to cover (buy) the same amount on a one for one basis. This could potentially cost those who are playing games a lot of money and it would do wonders for our pps. More than likely those who have shorted here legally did so at .0006 and have already covered. You are correct in thinking it would be crazy to short at .0002, but you are forgetting about naked shorts which can be used to drive the price down or even create the illusion of a never ending supply of shares at the ask.
Kilo
There are two types of shorts, there are the legal shorts and there are naked shorts (which are illegal) these naked shorts are what he is speaking of they are selling shares that do not exist. If Matt was to do a mandatory cert switch by creating a new class of commons, they would be forced to cover (buy) the same amount on a one for one basis. This could potentially cost those who are playing games a lot of money and it would do wonders for our pps. More than likely those who have shorted here legally did so at .0006 and have already covered. You are correct in thinking it would be crazy to short at .0002, but you are forgetting about naked shorts which can be used to drive the price down or even create the illusion of a never ending supply of shares at the ask.
Kilo
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