Hi Midtown,

Very informative post, as usual.

However, there's one of your statements that I don't understand.  You say that a shorter will buy and sell immediately one of its blocks of shares to short.  When you short, you sell shares that you don't own, then you buy real shares when the stock price has gone down.  If you've bought a block of shares at $100,000, for example, and you sell them immediately for approx. $100,000, you have zero net dollars and you no longer have the shares.  So how does this buy/sell immediately process allow you to short a stock?

Thanks,

Snowdrift