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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?


To: JoF who wrote (62585)1/13/2000 6:41:00 PM
From: Wes Stevens  Read Replies (1) | Respond to of 108040
 
You have it mostly right. The stock is borrowed but it also has to be sold in order for you to be short. It is sold on the open market like any other stock sale. Think about it. If they did not sell the borrowed stock then your own brokerage is holding your short and betting against you. When you cover you buy on the open market and the stock goes back to your broker.