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Old 22-10-2021, 19:03   #113
Hugh
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Re: Rising cost of living

Quote:
Originally Posted by OLD BOY View Post
It’s all part and parcel of capitalism. It’s how it works.

It is also necessary. For example, although selling short seems heartless, who else will actually buy a failing company? Ban the practice and everything is lost.
That’s not what shorting is…

https://www.fool.com/investing/how-t...stock-meaning/
Quote:
Shorting a stock means opening a position by borrowing shares that you don't own and then selling them to another investor. Shorting, or selling short, is a bearish stock position -- in other words, you might short a stock if you feel strongly that its share price was going to decline.

Short-selling allows investors to profit from stocks or other securities when they go down in value. In order to sell short, an investor has to borrow the stock or security through their brokerage company from someone who owns it. The investor then sells the stock, retaining the cash proceeds. The short-seller hopes that the price will fall over time, providing an opportunity to buy back the stock at a lower price than the original sale price. Any money left over after buying back the stock is profit to the short-seller.
Shorting is speculation…
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