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Re: babygirl1954 post# 89092

Tuesday, 10/24/2017 6:21:36 PM

Tuesday, October 24, 2017 6:21:36 PM

Post# of 138020
I am no expert but a short the way I understand is when you "borrow" a number of shares from a broker and sell them right away at market price, you do this assuming the price will drop, you then buy back the same amount of shares at the lower price and give them back to the broker. You keep the difference of what you sold them for and what you bought them back at. There is a deadline that the shares must be returned so if the price does not drop you still have to replace the "borrowed" shares, this is the risk. My understanding is that there are no brokers that will short a penny stock.