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Technology Stocks : BORL: Time to BUY!
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To: Scott Pedigo who wrote (8615)1/20/1998 8:35:00 PM
From: Paul Corbett  Read Replies (1) of 10836
 
You don't short shares that "don't exist". When you sell short, your broker has to borrow the shares to sell and you get a credit in your account for the "sale".Presumably you need to deposit some equity so your broker will do this for you. When the price falls you buy back the shares at a lower price thus cancelling the transaction.Your broker returns the shares he borrowed to whoever he borrowed them from.

Of course if the price rises you must buy back the shares at a higher price and lose a lot of money

Needless to say it is a very expensive procedure in terms of commissions,etc..

Your broker will advise you further
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