Your stock market questions answered

Clodfobble · 04-27-2005, 08:20 PM

I heard a description of something once where (if you thought a stock was going to go down,) you could basically "borrow" someone else's shares, sell them, then when the price went down buy them back and give the guy the shares back, thus pocketing the difference in what you bought it back for.

Is that just an inaccurate analogy for a Call, or is that something different?

lookout123 · 04-27-2005, 08:24 PM

sorry, i split it into two posts. that is effectively what SELLING SHORT is.

04-27-2005, 08:24 PM	#2
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	sorry, i split it into two posts. that is effectively what SELLING SHORT is. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

04-27-2005, 08:20 PM	#1
Clodfobble UNDER CONDITIONAL MITIGATION Join Date: Mar 2004 Location: Austin, TX Posts: 20,012	I heard a description of something once where (if you thought a stock was going to go down,) you could basically "borrow" someone else's shares, sell them, then when the price went down buy them back and give the guy the shares back, thus pocketing the difference in what you bought it back for. Is that just an inaccurate analogy for a Call, or is that something different?

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