I know you guys aren’t financial advisors, but the husband is doing something I don’t understand. He’s planning on buying Disney stock so that when it tanks he’ll profit. The rest of our money is in DWAC, 1000 shares. Is what he doing safe?
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The only way to make money when a stock tanks that I am aware of is a short sale.
You have to have a margin account to sell short. I have an account but have never sold short so I am shakey on how it actually works, but from what I understand you do not buy stock first. You sell borrowed stock that is fronted to you by your brokerage, and then when the stock drops you buy the stock at a lower price to pay back the brokerage.
Edit: In my opinion short selling should be outlawed. It is a method the financial cabal uses to devalue companies that won't play by their rules.