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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel?

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To: LTK007 who wrote (7191)6/26/1999 12:50:00 AM
From: John Madarasz  Read Replies (1) of 20297
 
max90...

Selling short...

You initiate the process of shorting a stock by first borrowing shares from a current shareholder. This may sound difficult, but it isn't; your broker does this for you automatically. In the very next breath (well, actually, the next time the stock upticks), you sell these borrowed shares at the current market price. Then you sit and wait, rooting the stock downward. While you wait, you have to pay dividends to the person who actually owns the stock you borrowed, and, in some cases, you can also be subject to paying margin interest to the brokerage, just as if you had borrowed money.

financialweb.com

Best Regards, John

PS. I have never shorted a stock in my life...probably never will...
but as a novice I believe that the more you know ...the better off
you are. I also believe that if you want to effectively trade the markets it is in your best interest to seriously study the art of hedging.
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