Originally Posted by
chrysaurora Wait a second guy, help me understand this: so, shorting means that the trader sold borrowed shares (hoping the price would go down) and is obligated to buy them back (to repay the lender). Then... if there are 113M shorts as of today .. shouldn't the price have gone down? I mean, if so many shares are being sold (shorted), should it not result in over-supply?
Does this mean the demand for RIM shares has increased so much that even with "short" shares flooding the exchange, the price continues to go up?
AND
Because these short-sellers are obligated to buy equal numbers of shares back, then that should result in even MORE buying. So, the organic demand + demand created from 113M shorted shares should drive the price even higher in coming weeks?