General Discussion

Progressive Jones

(6,011 posts)

9. Thanks !!! A couple more questions that came to me while reading your explanation.

Sat Jan 30, 2021, 02:07 AM

Jan 2021

You said that one would borrow the value of a stock today, and pay back the stock's value at a later date.

Is the borrower in this arrangement being lent cash against stock that the borrower already holds, or are they actually borrowing shares of the stock?

Did the day traders all just coincidentally happen to notice what was going on with the GameStop stock, or was this a
sort of organized thing?

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I know little-to-nothing about stock trading. Can someone please give me the "Dummie's" version of [View all] Progressive Jones Jan 2021 OP

When it comes to trading stocks, you can take a short position on the direction of the stock. Yavin4 Jan 2021 #1

Thanks for your insight. Nt cate94 Jan 2021 #2

That is a wonderful, succinct, and totally clear explanation. PoindexterOglethorpe Jan 2021 #3

Thank you. I finally understand it now. Vivienne235729 Jan 2021 #4

it depends. uncle ray Jan 2021 #17

Wow. What an interesting development. Those young people Vivienne235729 Jan 2021 #30

great summary--I'd just add they "borrowed" so many shares they cornered the market on themselves fishwax Jan 2021 #6

You don't borrow " the value of the shares" when selling short A HERETIC I AM Jan 2021 #8

The point of my post was to explain short selling in terms that a lay person can understand Yavin4 Jan 2021 #19

Thanks, Yavin. smirkymonkey Jan 2021 #20

..... A HERETIC I AM Jan 2021 #38

+100000000000000000000000000000000 x infinity AmyStrange Jan 2021 #23

Thanks !!! A couple more questions that came to me while reading your explanation. Progressive Jones Jan 2021 #9

Whether you borrow the actual cash value of the stock or rent the stock itself, Yavin4 Jan 2021 #18

Maybe think of it this way for simplicity ADK Jan 2021 #33

Almost there jmowreader Jan 2021 #15

Thank you! I've been looking for an explanation of "this week" all week, but everywhere.. LAS14 Jan 2021 #26

Basically the ending to TlalocW Jan 2021 #5

+100000000000000000000000000000000 x 2 AmyStrange Jan 2021 #24

Thanks for the easy to understand overview PersianStar Jan 2021 #7

A Simple Explaination of Shorting Stock. PurgedVoter Jan 2021 #10

Is the "bag of sugar" shares of stock, or cash against shares already owned by the borrower? nt Progressive Jones Jan 2021 #11

Here's my version as it's been explained to me progree Jan 2021 #12

No correction from me, old pal. You are spot on correct A HERETIC I AM Jan 2021 #13

The concept of Short Selling is not limited to just stocks. Yavin4 Jan 2021 #21

Are you serious?!? And no shit. A HERETIC I AM Jan 2021 #36

The exact title of the OP: Yavin4 Jan 2021 #39

BTW, the expiration of a short position... A HERETIC I AM Jan 2021 #14

Thanks much. I don't know where I got "a few weeks" from, probably that came from some kind progree Jan 2021 #37

it can be either. mopinko Jan 2021 #16

bag of sugar is stock nt PurgedVoter Jan 2021 #40

Thanks ! Yeah, I got that part. I just wasn't clear if the loan was cash or stock. Got it now. nt Progressive Jones Jan 2021 #42

A bunch of Dumpy Incels and gamer dweebs getting their jollies. BlueNProud Jan 2021 #22

A large group of regular people edhopper Jan 2021 #25

Trust me Dump will align himself with these white bros. BlueNProud Jan 2021 #35

Lets hope not. edhopper Jan 2021 #41

Gee, that's how I'd characterize the insurrection gang. Arthur_Frain Jan 2021 #27

There's plenty of Turin_C3PO Jan 2021 #29

I'm quite aware that gamer dweebs cross the political spectrum. Arthur_Frain Jan 2021 #31

LOL ! Lots of crossover there ! n t Progressive Jones Jan 2021 #32

Good thread. dalton99a Jan 2021 #28

In order to short a stock you must have a margin account. marie999 Jan 2021 #34

Here you go! Margot Robbie explains finance terms Quixote1818 Jan 2021 #43