how high can this share price go?, page-18

jayhotcopper - shorters do provide a service.

Before you and others pen a reply, let me state that I have never shorted a stock. Just not a game I want to play!

However if we look at the types of short positions, there are basically only two. The short term trader who shorts, and must buy back the stock with the 5 days required to settle, and the 'big' guys who have to borrow the stock and pay interest.

You can't short a stock for more than a few days unless you borrow the stock, or continually churn your position - a likely road to ruin due to trade costs.

So who are the people who lend the stock to the shorters? These my friend are often the institutions who run the funds that so many rely upon for their pension and other long term investments. They make a risk / reward decision based on the 'interest' return that can be achieved. Is this any different from them writing an option on the stock?

This then provides liquidity for a stock and allows larger volumes to be traded, both of the buy and sell side.

When LYC increases in price, will you all be thanking the shorters for providing you with the opportunity of a life time?