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Re: SurgeGuy2.0 post# 270367

Friday, 01/16/2015 12:53:24 PM

Friday, January 16, 2015 12:53:24 PM

Post# of 380517

"What happens next is complex, and involves the offshore lender, US Brokerage firms, and Canadian Brokers. The lender calls his broker, who is instructed to short sell the company's stock into the ground. Short selling involves the selling of imaginary shares into the market in the hope that the price will drop, and the short seller can then "buy back" the shares (that they never actually owned in the first place) at a cheaper price, and pocket the difference. Once a stock is sold short, a seller (or their broker) must cover their position by "borrowing" shares from other stockholders (usually those shares that are held in a brokerage house, such as E*Trade, Ameritrade, etc.), and sell them into the market. Sound unethical, and bit confusing as well? Maybe but it is a legal practice that has flourished unchecked for years."

- The Naked Truth by Mark Faulk


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