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Saturday, 10/04/2014 1:44:55 PM

Saturday, October 04, 2014 1:44:55 PM

Post# of 43082
Short selling has to do with the selling of a stock that the seller doesnt own.
,but its promised to be delivered.When you short sell a stock your broker will lend it to you from the brokers own inventory or from another one of the firms customers or from another brokerage firm.The shares are sold and the proceeds are credited to your account.You will have to at some point close the short by buying back the same number of shares or COVERING and returning them to your broker.If the price drops you can buy back the stock at a lower price and make a profit on the difference. If the price of the stock rises ,you have to buy it back at the higher price and you lose money.
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