I think I understand the definition of shorting a stock. I am also NOT savvy enough, or brave enough to ever do it. My loss.
Aside:
I do buy as much ONOV as I can but I am certain it is tiny amounts compared to others here. I started when I believed the Coffee Rust treatment product was real and had an honest booming future. Later it wasn't even worth selling when the stock value dropped so much and stayed so low. Then, the company was sold. The new people's history and present numbers look good but admittedly it still comes down to faith that they will ultimately do what they said. But, here I am.
Now: Forgive my ignorance, which is abundant.
I thought it required a broker that was willing to loan a quantity of stock for a specific limited SHORT amount of time, before the borrower was required to pay that stock back to the broker. That borrowed stock would be sold. The price of the stock goes down and the borrower buys the now cheaper stock and pays it back to the broker, thus pocketing the difference.
I do see that this is a way to make money when a stock price actually goes down instead of up. It all hinges on being able to sell stock for real, that you didn't really have to pay for; at the time you sold it anyway.
If the above is basically correct, I have two big questions.
There are Brokers who will do this for OTC stocks?
and
I thought those 'time limits' for the borrow were really short such as 2-3 weeks top. Comments here suggest it can be significantly longer.
I can see where super confident brave souls would live dangerously and do this. It scares the willies out of me though.
I still hope for an answer to those 2 big questions.
