September 30, 2009
I was just became aware that comments and questions would be taken.
Truth is shorting a stock allows an artificial increase in a traded companys stock float. I know of no company or long-term investor who wants Others to have the right to dilute the float of shares for any period of time unless holders of the shares are fairly compensated. For a company and holders of a companys shares (not a short seller or loaner), how and what is an owners positive financial recompense for a Short seller or Loaner to indirect and artificially increase in a companys stock float?
IE. A company may agree to issue a float of 10 million shares. One big Investor/Bank or other who owns a million shares of this company creates a contract with a Short Seller(s) to loan out his million shares giving him the RIGHT to indirectly and artificially increase the float to 11 million shares by using IOUs and markers all created by the financial system.