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Re: How does a short sell work?

So far in my life I have never come across a person who bought short. I
would be surprised if somebody here did because it's adverse to the concept
of inflation.

Roy


"GoldTrader" <nomads9@hotmail.com> wrote in message
news:9a1136ac.0402221917.2d00050c@posting.google.com...
> Durrock (DWEBER2@NEW.RR.COM) >I don't know jack about stocks, but I'm
> trying to figure it out.  Can someone tell me how a short sell works.
> I know that you make money off of a stock going down, but why?<
>
> SELLING SHORT
> "The three steps of a short sale are defined:
>
> As a sale of stock you don't own, in anticipation of a drop in price.
>
> Stock is borrowed from your broker for delivery to the purchaser.
>
> Later, stock is purchased in the open market and returned to the
> broker to complete the transaction.
>
> In other words, the stock is sold first then bought later, at
> hopefully a lower price.  This is the reverse of a normal buy-first,
> sell-later transaction."
>
> Louis Smitten-Speculator


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