of shares demanded equals the number of shares supplied. In the case of
Palm, the supply of shares could not rise to meet demand because of the
sluggish response of lendable shares to short. Similarly, if optimists are will-
ing to bid up the shares of some faddish stocks and not enough courageous
investors are willing to meet that demand by selling short, then optimists
will set the price.
166 LAMONT AND THALER