RE:RE:Shortsstockmonster6 wrote: short sellers don't drive a price up, they drive it down.
They lend shares from someone, say $1.
They owe those shares back. They then try to buy those lent shares at a lower than $1, say, 0.75 cents, earning 25 cents for share. They return the shares back, pocketting the 25 cents profit per share.
If the price goes up, they owe those lent shares of $1 back at a higher amount. Let's say the stock goes to $1.25. They lose 25 cents per share.
That is the basics of short selling, unless I'm horribly off. Shorters down own the stocks, they borrow them temporarily. They are not true investors in the company and bank on a stock tumbling.
HOWEVER, I'd find it surprising any shorter would short a stock like this.
They don't drive the price down, the simple act of selling the "borrowed" shares makes the price drop. If nobody else sold when the price dropped then when they buy back the "borrowed" shares the price would go back to what it was. So driving the price down is an illusion that creates panic which is what really drives the price down and if all those "borrowed" shares got bought up by actual investors then they would have to buy back the equivalent amount of shares from someone else selling them at whatever price they are selling them for hence why he might sell them for $1 and have to buy them back at $1.25