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Old 01-29-2021, 08:27 AM   #2095
troutman
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Join Date: Oct 2002
Location: Crowsnest Pass
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Analogy from a financial office:


• 5 hockey sticks cost $100. The Edmonton Oilers have 5 hockey sticks. The Calgary Flames ask to borrow the 5 hockey sticks for a bit, but instead sell them. Thinking the price will go down, they plan to buy five hockey sticks back later for less, give them back to the Oilers, and make a profit.
• All the teams in the North Division notice what the Flames are doing, and decide to buy up all the hockey sticks on the market, driving up the price. Now the Flames have no choice but to buy back the sticks from the other teams in order to return what they borrowed. And if the other teams stick together, the Flames will be forced to pay a much higher price.
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