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Microcap & Penny Stocks : BASHERS POST THEM HERE!!!!!

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To: Dave Gore who wrote (46)6/29/1998 9:09:00 PM
From: CatLady  Read Replies (1) of 390
 
" Isn't there something wrong with someone who hopes companies in America will fail or have bad stretches? "

Dave, I don't think you understand what shorting is all about.

Let me briefly try to explain. Stocks are 'fairly' priced when that price properly takes in to account reasonable expectations of future earnings and growth. If someone comes to the conclusion that a stock is underpriced they should buy it. If they think it is overpriced, they should sell it. If you happen to find that overvalued situation on a stock you don't already own, you can sell short.

Buying or selling (short) is simply a bet that the price of the stock will move to what one perceives the 'fair' value to be.

"You are always hoping to make money at the expense of others."

Isn't that what every market participant hopes? The only difference is whether you make money from someone who already owns the stock, or from someone who hopefully will come along later. Your profits don't come out of thin air. And with the exception of dividends, they also don't come directly out of the company, your profit come from the pocket of whoever buys the stock from you.

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