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Short selling
- One of the motives behind the defamatory posting may have been short selling. The following is an explanation of how it works from Zlotnick v. Tie Communications, 86 F.2nd 818-820 (3rd Cir. 1988):
- Where the traditional investor seeks to profit by trading a stock the value of which he expects to rise, the short seller seeks to profit by trading stocks which he expects to decline in value….Short selling is accomplished by selling stock which the investor does not yet own; normally this is done by borrowing shares from a broker at an agreed upon fee or rate of interest. At this point, the investor’s commitment to the buyer of the stock is complete; the buyer has his shares and the short seller his purchase price. The short seller is obligated, however, to buy an equivalent number of shares in order to return the borrowed shares. In theory, the short seller makes this covering purchase using the funds he received from selling the borrowed stock. Herein lies the short seller’s potential for profit: if the price of the stock declines after the short sale, he does not need all the funds to make his covering purchase; the short seller then pockets the difference. On the other hand, there is no limit to the short seller’s potential loss: if the price of the stock rises, so too does the short seller’s loss, and since there is no cap to the stock’s price, there is no limitation on the short seller’s risk. There is no time limit on this obligation to cover.
Short selling: step by step
- Consider how investor Z can profit from 100 shares of stock X that he borrows from broker A:
- 1. Z borrows 100 shares of X from A at a certain time, T1 (say Monday, October 11, 2004). X is worth $10 a share at this time so 100 shares of X are worth $1000.
- 2. Z immediately sells these 100 borrowed shares of X at its market value of $10 per share or $1000. This still occurs within time frame, T1.
- 3. Z opens an account with Yahoo and starts spreading false rumors about the financial health of X on Yahoo’s financial bulletin board. He uses several usernames, copies the same message over and over, and creates the illusion that X is going down the tubes:
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By c_smear/c1_smear/c_smearrr/etc. All people who run corporation X are lying thieves OUT TO STEAL YOUR MONEY. They also DRESS FUNNY too. So SHUN THEM LIKE THE PLAGUE! SELL YOUR STOCK, even if you have to take a loss .
- 4. Through cyber smear, Z lowers the price of X to $9 a share.
- 5. Z then buys back 100 shares of X at T2 at its new value of $9 a share for a total of $900.
- 6. Z gives back the 100 shares of X that he borrowed to dealer A.
- 7. Z pockets the difference between the value of 100 shares of X at T1 ($1000) and its reduced value at T2 ($900). He has just made $100 by short selling stock.
- 8. But there are two small problems. First, the ISP (Yahoo) used by Z is required to reveal his IP address if it receives a subpoena from the court. Second, defamation, specifically libel, is illegal.
Slander = whistle blowing by meddra 2k
The following is a BXM posting on Yahoo's Finance Bulletin Board. It was posted 4/11/00 and accessed 8/10/2000.
Questions & Answers
A golfer on a fairway is 70 m away from the green, which sits below the level of the fairway by 20 m. If the golfer hits the ball at an angle of 40° with an initial speed of 20 m/s, how close to the green does she come?
A mouse of mass 200 g falls 100 m down a vertical mine shaft and lands at the bottom with a speed of 8.0 m/s. During its fall, how much work is done on the mouse by air resistance
Can you compute that for me. Ty
Jude
what is the dimension formula of energy?
Chemistry is a branch of science that deals with the study of matter,it composition,it structure and the changes it undergoes
Adjei
please, I'm a physics student and I need help in physics
Adjanou
chemistry could also be understood like the sexual attraction/repulsion of the male and female elements. the reaction varies depending on the energy differences of each given gender. + masculine -female.
Pedro
A ball is thrown straight up.it passes a 2.0m high window 7.50 m off the ground on it path up and takes 1.30 s to go past the window.what was the ball initial velocity
2. A sled plus passenger with total mass 50 kg is pulled 20 m across the snow (0.20) at constant velocity by a force directed 25° above the horizontal. Calculate (a) the work of the applied force, (b) the work of friction, and (c) the total work.
you have been hired as an espert witness in a court case involving an automobile accident. the accident involved car A of mass 1500kg which crashed into stationary car B of mass 1100kg. the driver of car A applied his brakes 15 m before he skidded and crashed into car B. after the collision, car A s
can someone explain to me, an ignorant high school student, why the trend of the graph doesn't follow the fact that the higher frequency a sound wave is, the more power it is, hence, making me think the phons output would follow this general trend?
Nevermind i just realied that the graph is the phons output for a person with normal hearing and not just the phons output of the sound waves power, I should read the entire thing next time
Joseph
Follow up question, does anyone know where I can find a graph that accuretly depicts the actual relative "power" output of sound over its frequency instead of just humans hearing
Joseph
"Generation of electrical energy from sound energy | IEEE Conference Publication | IEEE Xplore" ***ieeexplore.ieee.org/document/7150687?reload=true
Ryan
what are the types of wave
Maurice
fine, how about you?
Mohammed
A string is 3.00 m long with a mass of 5.00 g. The string is held taut with a tension of 500.00 N applied to the string. A pulse is sent down the string. How long does it take the pulse to travel the 3.00 m of the string?
Who can show me the full solution in this problem?
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Source:
OpenStax, Business ethics. OpenStax CNX. Sep 04, 2013 Download for free at http://legacy.cnx.org/content/col10491/1.11
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