WHAT'S A GOOD CANADIAN STOCK TO SHORT Message Board

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Gold/Mining/Energy : WHAT'S A GOOD CANADIAN STOCK TO SHORT

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To: KevinK who wrote (53)	3/25/1998 11:53:00 PM
From: Bill Jackson	Read Replies (1) of 112

Niven. Shorting is selling a stock you do not own in the hope the price will drop and you can then buy it to cover your short. If I tell you to go to the store to get me some milk and I give you $2 for it. You go to a friend and borrow some milk and give it to me to satisfy the $2 debt. So now you owe the friend the milk. Next day you go to the store and buy some milk for $1.50 and return that milk to the friend. You have made 50 cents. You shorted the milk. If you went to the store and milk cost $2.50 because all the cows were scared by lightning and gave less milk and the price went up, you would lose 50 cents as you are duty bound to give that milk you borrowed back to your friend. Shorting is the opposite of going long. You buy some stock and puy it in your pocket, you are "long" on that stock. If it goes up, you sell and you profit. If it goes downm, you sell and you lose. The exact opposite of going short. Money can be made both ways by careful operators. Money can also be lost both ways. Bill

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