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
"GoldTrader" <email@example.com> wrote in message
> 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