To understand this subject, first read "Selling Short" and then "Borrowing Stock." When there is a large amount of stock being borrowed by numerous people, of course the borrowers are known to the lenders; some rough idea as to the amount loaned is understood. We are supposing all the time that one stock only is under consideration. When there is a great deal of one kind of stock being borrowed, the natural inference is that there is a bear element at work to depress the price of that stock. There may be others who do not wish to see that particular security decline in price, and who may, therefore, form a combination by which they . prevail upon the lenders of it to demand its return. As a result, the borrowers, being notified to return the stock, immediately seek for it again elsewhere. Owing to the combination working against them, they find a scarcity of supply, and are obliged to actually purchase the stock in order to make delivery. This sort of a move causes the simultaneous buying on the part of those who are "short," with the result that prices are suddenly advanced.