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Re: WishingWell31 post# 39779

Tuesday, 05/25/2010 10:59:14 PM

Tuesday, May 25, 2010 10:59:14 PM

Post# of 68381
WishingWell31-what does that mean



Short Selling—Borrowing a security from a broker and selling it, with the understanding that it later must be bought back, hopefully at a lower price and returned to the broker. The major danger in "selling short" is that if the price of the stock goes up, you will have to pay more than you sold it for in order to cover your short position.

http://www.calcpa.org/content/consumers/ask/2000/mm.00.40.aspx

Basically an investor is betting the (PPS) Price per share will go down and not up. Pennies can not be shorted by individual investors only licensed brokers/hedge funds.