RCC Holdings Corp fka RCCH

[frogdreaming]

It isn't really too complicated.

I'm still confused on how you guys say you can't make money shorting, vw was shorted for profit right?

You can make money shorting. If you think a stock price is going to fall, you sell shares (you don't really have) at the current price. The money goes into your account, but is held from you by your broker until you replace the stock you sold. After the stock price has fallen, you buy the shares to replace the ones you sold using the money in that account. After you have replaced those shares your broker will release your 'profit' to you.

For it to work you need a starting price (the price at which you sell) that is higher than the cover price. (The price you have to pay to replace the shares). Otherwise there is no profit and you can only lose money.

VW was shorted because the price was falling from a high price to a lower price. RCCH can't really be shorted because the starting price (.0001) is as low as it is going to get. It doesn't make sense to sell shares short if you have to pay the same amount of money when you cover. Especially if you don't get your money from the broker until you have covered the short.