Shorting Stocks

Sep 02, 2004 11:41

When you short a stock you sell a stock that you don't own. The broker borrows the stock from another client or from the brokerage and then sells it. The proceeds from the sale get held by the broker as collateral. If the stock price goes down the broker gives some of that collateral back to you. If the price goes up he demands more collateral. He ( Read more... )

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yayhappens September 2 2004, 17:25:10 UTC
off topic, but...I wanted to wish you a happy belated birthday. =]

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