Op here to the intelligent posters that explained what it meant thank you. To the loser who wants me to google cheesecakes you can f--- off!
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Can someone give me a good cheesecake recipe because I don't know how to google
Its essentially a form of gambling on a company's stock going significantly lower than what you originally "borrowed" the stock for, sold it, & bought it back
i.e. BORROW 100 shares from broker & sell for $100 EACH share --- Cost = $10.000
The Borrowed stock craters to $50
BUY the 100 shares of stock at current price ------------------------- Cost = $ 5.000
RETURN the 100 shares to the Broker / Lender and net a profit of ------ $ 5.000 GAIN
THE REVERSE:
BORROW 100 shares from broker & sell for $100 EACH share --- Cost = $10.000
The Borrowed stock RISES to $150
BUY the 100 shares of stock at current price ------------------------- Cost = $15.000
RETURN the 100 shares to the Broker / Lender and LOSE ----------------- $ 5.000 LOSS
Shorting a stock is when you borrow shares and sell at a high price and expect to buy back the shares you sold (borrowed) at a lower price.