Replies to post #3365 on Jammin Java Corp (JAMN)

[Brophtron]

Yes, but normal investors or traders do not borrow stocks, but rather buy it (long) and sell it (short) with an intention to re-buy it later. However, they such sellers still use the term 'short', which one has to put in the right context to understand it.

The borrowing of the shares is what the BROKERAGE is there for.

Sellers do NOT use the term "short" when they're selling shares that they already bought in the past, unless they have no idea what investing terms mean.

When you are LONG on a stock, you own shares that you bought. When you sell your shares, you're just selling shares - that is not shorting a stock. Period. Unless you sell more than you originally bought. If I own 0 shares and buy 1 million shares, I'm long on the stock for 1 million shares. If I sell those shares and no more, I simply sold shares; I shorted nothing and have 0 shares in the end.

When you are SHORT on a stock, you sold shares that you never owned; the brokerage borrows shares to cover what you sold. If I have 0 shares and short sell for 1 million shares, I'm short on the stock for 1 million shares; that's how it shows in a portfolio on the brokerage site or a statement.

Simp, I've worked for a securities accounting company for 15 years. I know what I'm talking about.

[236T568]

actually, no again

a short sale is done when the stock is not owned



Yes, but normal investors or traders do not borrow stocks, but rather buy it (long) and sell it (short) with an intention to re-buy it later. However, they such sellers still use the term 'short', which one has to put in the right context to understand it.