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re: I have a really stupid and dumb (or both) question about shorting a stock...

Posted on 1/26/16 at 5:58 pm to
Posted by makersmark1
earth
Member since Oct 2011
16092 posts
Posted on 1/26/16 at 5:58 pm to
Basically, instead of buying today and (hopefully) selling for a profit later, you sell shares today and hope they go down, then buy shares to close the position.

So sell ABC shares (Short - you do not own any shares)
Then buy to cover your short position in ABC later.

Posted by bovine1
Walnut Ridge,AR via Tallulah,LA
Member since Dec 2004
1286 posts
Posted on 1/26/16 at 6:52 pm to
I just have one thing to add. You are borrowing the shares in order to sell them short. It's happened several times to me that I placed the order and was told that there were no available shares to borrow. Obviously this is more of a problem with more thinly traded stocks.
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