GREY:MAAFF - Post by User
Comment by
StoxRokon Oct 15, 2008 12:23pm
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Post# 15526754
RE: shorting destroys value/capital
RE: shorting destroys value/capital You are forgetting the two rules of the stock market, though, Shining:
That is fear and greed. Greed drives prices higher, fear knocks prices down. If more people are willing to buy, all the shorts won't take the stock down. If more people are willing to sell, the buyers won't take the stock up.
It's a debate between buyers and sellers (greed vs fear). Nothing more, nothing less.
And by the way, short sellers had next to nothing to do with MIR's share price demise, as the largest the short position ever got was roughly 400,000 (a very small percentage of the shares outstanding). It tanked for no other reason than those who owned the stock out of greed were also the ones who sold it out of fear ...... so I'm not sure that I'm making your point.
SR