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 If the value of the dollar drops, will the value of gold increase?
Do precious metals increase in value as the dollar drops??...


 What are the 5 best open ended Mutual Funds to purchase now.?
NAV target is within 12 Rupees, and the MF can be either to be launched or already listed. Thanks for all advices....


 Could anyone tell me why the Dollar is falling against other currencies, please.?
...


 How to learn about real stocks, that one can buy?
Looking for small cap stocks, which i can buy. I have been reading a lot of books about stocks but still don't understand how to pursue the right stock....


 With the stock market going down, and looking like we're in a recession, will gold stocks do well?
In times of recession, the stock market going down, the economy slowing down and a weak dollar....is it best to put my money in gold stocks at this time? do they perform well in this type of ...


 How can i survive or make money during a recession?
...


 What is a good global/international fund?
i guess i'm trying to avoid the american economy and go for stable high growth international?
Additional Details
marketiva account does not accept ...


 Is Sony a good investment?
Is investing in Sony stocks a good financial decision? Why or why not?...


 What is the best well spent $50 you've done this year?
...


 My good friend has been in the military for the past 4 years and has saved $50,000 what should he do? ?
He had been playing the stocks but he quit for now. He is thinking it would be good to invest it in purchasing land while property is selling low or buy a forclosure. He doesnt get out for two more ...


 How do I obtain funds in order to begin trading options?
I'm trying to find out if there're some sort of loans specifically designed to be invested into trading options or futures.
If anyone knows anything, I'd appreciate if you share ...


 Shall I buy or rent now?
I live in South west of england and I am very much confused whether to buy or rent a house in this curent market situation? I will be going back to my country after 5-6 years and thinking whether it ...


 How can i enter into share market business as an investor? I want to invest a small amount 10,000 initially.?
...


 What is a currency other than the EURO that will likely increase in value long term? (not US$)?
...


 Could the subprime loan crisis crash the stock market?
...


 How does someone go about buying stock in a company...lets use Apple as an example..?
Who would I contact? Where do I begin?...


 When my siblings and I were young, my father purchased AT&T Stock in our names using our soc. sec.numbers.?
My parents later divorced and my father would've had possession of the stocks. We don't know if he ever cashed them in, or if they're sitting in a box in his girlfriends garage in ...


 What is a good penny stock to invest about $1000.00 in?
I am very new to investing and I would like to know what a good penny stock to invest in? I got a tip that IBC.IQ would be a good one to invest in but it looks very unstable. I have $1000.00 to get ...


 What would you advise w/ this investment?
Suppose that you have a client that is very risk adverse. He is 50 years old and has a 20+ year investment time horizon.

Despite his risk aversion, he wants to generate a rate of return ...


 What should i do buy a house or invest else where?
Im at a cross roads, i dont know weather to buy a house, or invest my 150k.
So what do you think, stock market or what???????...



RALPH HINRIK
Is "selling short" meaning selling other peoples shares on a declining market? ?
& then buying them back at a low price & thus replacing them after making the profit! Is this not criminal?.
                     
 




minchy_me
yes
we can say you are seling stocks of other people,because u don't have tht stock in ur portfolio and u going to sell it. so it means if u sell first then u have to cover it later at any cost no matter market goes down or not. if u don't then u will be penalised for tht with 15% of the total amount u sold.
Its always risky to go for short selling.


Steve B
Unlike normal buying & selling, Share trading has historically operated on a 'settlement period' basis ...

During any one period brokers and investors would buy and sell shares multiple times .. at the end of each period, the 'net' effect was worked out and the trades 'settled' .. for example, if I purchased 100 shares and then sold 90 during the same period, at the end I would receive the (net) 10 shares and pay only the difference between the buy & sell costs ...

This allows what is know as 'margin trading' ... if I buy a million shares and sell a million shares during the same period, at the end I pay for zero shares - indeed all I pay for is any fall in the price (or, in a rising market, I collect my 'winnings') ...

Of course my 'broker' will insist I put down some sort of 'deposit' (the margin) just in case the million shares drop in price a lot between the buy & sell ..

Now consider what happens in a falling market .. if I sell 'first' and buy 'second' at the end of the period I will get paid for the drop in price ..

In the 'old days' (paper Certificates) no-one would know if I had a million shares to sell or not = since I never had to actually 'deliver' the million shares (because at the end of the period, the sell / buy cancel out and I deliver / collect zero shares) it was quite possible to 'short' a stock without anyone being any the wiser ..


Of course, these days it's all a nonsense .. shares are traded electronically and can be 'transferred' between 'owners' instantly .. so perhaps it's time to apply the law and prosecute people who sell things they don't actually own ..


Eddy T
This a legal form of cheating.


raysor
It's not criminal. It is perfectly legitimite, unless, of course acommpanied by some sort of Market abuse. It is possible to buy shares with no money on T+10 settlement and then sell those shares on the same settlement without paying for them. Going short is selling the stock you haven't got (you don't get paid) and buying them back to effect settlement (UK anyway, I don't know about you crazy lot in US)
It hasn't been banned; that's just the financials.


piet lul
Rating
it is now.


Dad's found yer scoo'er
A sharp practice but it's not been criminal up till now. It's been banned now on both sides of the Atlantic, at least in the short term.


London NW3
Rating
It's allowed because it is thought that if it's a healthy company,there will not be enough sellers,as the moment it goes down,the SP is thought of as a bargain by others and buyers move in,to lift the SP.Making it very high risk for short sellers.
So the company needs to be struggling for sellers to bring in more sellers etc,rather than sellers,eventually enticing tons of buyers.

Any company with massive borrowings is at risk,ie,HBOS,B&B,Baratts,Taylor Wimpey.Because there is a credit squeeze.As the SP moves down,the more expensive credit is to that company.Low SP means high cost of borrowings,and a company with lots of debt is at risk.So one seller,triggers another seller until death.
The wall st crash of 1929 was mainly triggered by short selling.


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