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Gold/Mining/Energy : Zentek Ltd - ZEN -- Ignore unavailable to you. Want to Upgrade?


To: clear who wrote (4041)10/6/2013 1:32:16 PM
From: Berry Picker  Read Replies (2) | Respond to of 22860
 
No - you got that one wrong

Short sales are REAL sales but with pretend stock

What happens is like this

Your broker has 5 guys who bought 1 share (for example)
You call up and want to go short
He sells one of the shares and now has 5 guys who are
long 5 shares but he only has 4 left - he does not worry
about it unless too many of the other guys sell

If he ends up with only 2 guys long 1 share but only has 1
he may call you up and FORCE you to cover - buy back that 1
share you are short but unless he gets short on shares he will
allow you to sell 1 shares and buy it back when you want and lend
you that shares from the pool of shares he has

SHORT SALES ARE REAL SALES

They show up when you sell short on the ticker and
they take out some of the buying power of the market
and keep prices lower than they would have been

What I do not like is when you have a lot of shorts
you have people who believe the stock is going down
and they are not amateurs because most people who
short have been in the game a while or understand it

I am long