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Gold/Mining/Energy : American International Petroleum Corp
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To: Eric Eden who wrote (435)7/17/1997 8:08:00 PM
From: Uriel Yepes   of 11888
 
You borrow the stock from a brokerage house selling it at the current price with the promise you will return the shares. If the stock price drops then you can buy back those shares and the difference of what you sold it and what you repurchased at is your gain. That is the goal to shorting the only problem is that if the stock price rises you could be caught buying those same shares more expensive incurring your losses. If shorts are caught in a rising prices they usually buy back shares driving prices up.
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