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Re: jdorris post# 19149

Wednesday, 03/14/2007 10:32:23 PM

Wednesday, March 14, 2007 10:32:23 PM

Post# of 143048
Yes.
JDoris,
When I try to explain shorting to friends and family...
I say: "Imagine your a hula hoop dealer and you believe the price of hula hoops are going to go down over the next year.
You have a deal with your supplier that you can take hula hoops and either return them or pay for them later. So you buy 1,000 hula hoops for $1 each and immediately sell them for $1 each. Then the price drops to fifty cents. You go buy 1,000 of them (for fifty cents each) and return them to your supplier. You pocket $500 profit."
Shorting is legal but "naked" shorting is not.
Naked shorting is when someone sells shares but have made no arrangements to "borrow" them. Thus giving them an endless supply which beats the price down down down! Short sellers as a whole have stolen BILLIONS from investors and the SEC either doesn't care, can't keep up with it or ARE DOING IT THEMSELVES!
They almost always win in the long term.
(I love membermarks if this helped anyone)



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