Investor Help (NO Ihub questions)

[cintrix]

no that's not how shorting works - when someone shorts a stock they sell shares they don't own. So they are basically borrowing the shares. Say the price is $10 - but because they don't own the shares they are borrowing them and have to return them. When they return the shares (cover their short position ) it is in their best interest for the price of the stock to be lower than where they sold it. So say that stock went to $8 and they covered there, they made $2 because when they returned the shares it was $2 cheaper from where they sold short.