The way it was explained to me in high school was that if you wanted to sell short, you needed to find someone who was willing to lend you the stock. They had to have a share for you to sell, and you promised to buy it back at some future date.
I was horrified when I realized that you didn't really need to find someone, and you didn't really need to make a promise to buy it back one day.
The way it was explained to me in high school was that if you wanted to sell short, you needed to find someone who was willing to lend you the stock. They had to have a share for you to sell, and you promised to buy it back at some future date.
I was horrified when I realized that you didn't really need to find someone, and you didn't really need to make a promise to buy it back one day.
Shorts are ridiculously evil and corrupt.