 IMPORTANT BUSINESS QUESTION.... RE: stock? |
| i've worked for an electrical contractor for aprox. 7 years... today he offered to GIVE me 10% of the stock in the business, the only thing that i really have to agree to is that i will stay at ... |
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 Is it too late to open an IRA and deposit the maximum allowed for this tax year? |
| Is it too late to open a traditional IRA right now (November 2007) and deposit the maximum allowed of $4,000 for this tax year?... |
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 Sub-prime mortgages crisis-what is the lesson learnt and how can we avoid it in the future? |
| I would like to know what bank should and shouldnt do to avoid this crisis in the future.As the matter directly affect the US stock market and also the contagious to other part of the world.... |
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 25K. What is the best investment? |
| If you had $25,000 what is the best investment? What about $50,000? If you want, or should I say NEED an immediate return on your money, what is your best option? Serious answers only.... |
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 Is the share of parsvanath developers has good future? |
| i have to invest 1 lakh rs in shares. which is going to be best investment.... |
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| Have the world markets crashed already? |
I just don't get the gist of the economic crisis. I doubt i really will.
Any answers will help!... |
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 How do you make money in the stock market? |
| I would like to make $50.00 to $85.00 a month with out investing much money?... |
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 Does anyone know a good website or place to purchase stock? |
| i'm not planning on buying a huge amount of stocks but i'd like to get my feet wet and buy a few inexpensive ones and see what happens.... |
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 Is it wise to invest in different mutual fund companies or just one? |
Is it wise to invest in different mutual fund companies or just one company for maximum returns? My reason is that in case Company A fails, I still have a backup with other companies.
What ... |
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 Is anyone shorting stocks right now? |
| Seems like a good time to do so to make some money.... |
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Myles P | What is 'Short Selling'? |
In reference to the share markets, there has been a lot of talk about wanting to ban it but not exactly sure what it is ;-) |
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RMarc_FINA4242
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"Short selling" is a term used to describe a transaction where a person sells a stock they do not technically own to someone else. This is basically like placing a bet that the stock's price will go down after you sell it. I'll illustrate this situation with an example:
-Joe owns 10 shares of Microsoft's stock and I would like to "short sell" them to you.
I give Joe, let's say, $100 as collateral so that I can "borrow" his shares of stock. I take those shares, which are trading for $5/share and sell them to you for a total price of $50($5/share for 10 shares). I have just gained $50 from you through the proceeds of the sale.
Then, the price of Microsoft's stock falls to $2 in the market. I go out and buy 10 shares for a total of $20($2/share for 10 shares). I now go back to Joe and give him his 10 shares back, take back my $100 worth of collateral, and the transaction is complete. I have just made $30 in profit because I gained $50 in a "short sale" with you and then paid $20 to buy back those same shares and return them to Joe.
A scenario like this is the general idea of a the "short selling" process. I put up collateral to borrow another stockholder's shares of stock and sell them to someone else, hoping the price in the market goes down so I can purchase that stock and return the shares to the original stockholder. The exact terms of collateral must be agreed upon and you must find someone willing to do this with you.
Although there are more technical definitions and rules to "short selling," this is a simple scenario that should allow you to understand the concept. |
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g00gle26
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http://en.wikipedia.org/wiki/Short_selling |
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ClovrSly
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They did ban it. For a Temporary time. It's like steadying a patients head in the ambulance after a car accident (what NPR said). |
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Lee_FINA4242
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Shorting a stock means you borrow shares from your broker and sell them. You receive the proceeds right away from the sale but will need to repurchase the shares at a later point in time to replace the ones you borrowed. By doing this, you profit if the stock goes down, i.e. sell high, buy low. The broker will charge you interest while you still owe the shares because you are essentially borrowing money.
Shorting is more risky than simply buying a stock and holding it (a "long" position) since your downside is unlimited. When you buy a stock, the lowest the price can go is zero. When you short a stock, the price can just keep going up. For example, if you buy a $10 stock and it goes to $0, you're out $10. If you short a $10 stock and it goes to $50, you're out $40 and it can keep going up.
Hope this helps. |
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gianni_fina4242
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I can sell securities that I previously borrow from my broker. after I will have to rebuy it on the market and will have to give back to the broker the same quantity of stocks that i borrow.
it s claer that if the price of the stocks fall down i will gain rebuy the same quantity of them at lower price.
it ' s important know that i have to leave to the broker as collateral (IMR x initial value of the stocks) and the proceeds of short selling.
i hope i was clear..
bye |
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matty s
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in the simplest sense it is the borrowing of shares from a brokerage and then selling them and waiting for a decrease in price, and then buying them back at a lower price and giving them back to your broker with interest.
your broker takes them out of their inventory - from their clients or just from their inventory
sell high, buy low = profit
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tony200423man
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making money out of air |
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