Golden Eagle Int. (MYNG) Message Board

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Gold/Mining/Energy : Golden Eagle Int. (MYNG)

MYNG 0.0700

+5.7%

Feb 21 4:00 PM EST

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To: Fred C. Dobbs who wrote (29271)	10/23/2002 8:00:23 PM
From: Jon Matz	Read Replies (1) of 34075

OT: Shorting equals selling a stock you don't own. Your broker borrows shares from another investor(usually without their knowledge) and sells them at the current price. There isn't any expiration of the trade unless the broker needs them back, which doesn't happen very often. If the price goes down, when you buy them back (which is called covering), you don't get stock, you get the value of the difference in the price between trades. So if the price goes up and then you cover, you lose money on the trade. You never really own the stock. Before shorting was made legal, you could only make money in the stock if it went higher than you paid originally. With this option, you can now make money on stocks that are going down. There are leveraged derivatives like option contracts that are somewhat similar, they're called Puts. Hope that helps, Jon

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