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In reply to the discussion: I know little-to-nothing about stock trading. Can someone please give me the "Dummie's" version of [View all]A HERETIC I AM
(24,365 posts)13. No correction from me, old pal. You are spot on correct
And your explanation is more accurate than Yavin gives above, because he suggested the process involved borrowing the value when in fact, you do borrow the shares as you said.
With the proliferation of online trading platforms, people can see this for themselves if they have an account, because the option Buy To Cover will be among the available transaction types.
As I mentioned above, the actual shares used for this are held in Margin accounts typically. A given broker dealer will have access to those shares, should a retail customer choose to short an issue.
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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
great summary--I'd just add they "borrowed" so many shares they cornered the market on themselves
fishwax
Jan 2021
#6
The point of my post was to explain short selling in terms that a lay person can understand
Yavin4
Jan 2021
#19
Thanks !!! A couple more questions that came to me while reading your explanation.
Progressive Jones
Jan 2021
#9
Thank you! I've been looking for an explanation of "this week" all week, but everywhere..
LAS14
Jan 2021
#26
Is the "bag of sugar" shares of stock, or cash against shares already owned by the borrower? nt
Progressive Jones
Jan 2021
#11
Thanks much. I don't know where I got "a few weeks" from, probably that came from some kind
progree
Jan 2021
#37
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