Selling short - If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy the stock back on the open market. For instance, you borrow 1000 shares of XYZ on July 1 and sell it for $8 per share. Then, on Aug 1, you purchase 1000 shares of XYZ at $7 per share. Youve made $1000 (less commissions and other fees) by selling short.
Selling short : if an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. eventually, the investor must buy the stock back on the open market. for instance, you borrow 1000 shares of xyz on july 1 and sell it for $8 per share. then, on aug 1, you purchase 1000 shares of xyz at $7 per share. youve made $1000 (less commissions and other fees) by selling short.
Selling short