Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Click below to continue the discussion on the new site.

Go to the New Site
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
what is sellshort?

Short selling involves selling shares that you have borrowed from a broker. At a later date, you will buy the shares back in the open market, hoping you can purchase them for a lower price than you sold. This strategy is a bet that a stock's price will fall.

There are lots of nuances to short selling, not the least of which is that your liability is unlimited. (When you buy a stock, the price can only go down to zero. When you sell a stock short, there is not limit to the amount the stock can go up.)

Some more information on short selling is available here:

http://www.fool.com/FoolFAQ/FoolFAQ0033.htm

Fool on,

Warren
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.