This link has been bookmarked by 31 people . It was first bookmarked on 06 Oct 2008, by harry palmer.
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25 Jan 17
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A cash account requires that you pay for your stock when you make the purchase, but with a margin account the broker lends you a portion of the funds at the time of purchase and the security acts as collateral.
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he or she has bought a stock believing its price will rise in the future. Conversely, when an investor goes short, he or she is anticipating a decrease in share price.
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although interest is charged on margin accounts, so keeping a short sale open for a long time will cost more. Moreover, you can be forced to cover if the lender wants the stock you borrowed back.
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11 Feb 16
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18 Jan 16
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20 May 15
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Still with us? Here's the skinny: when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later, you must "close" the short by buying back the same number of shares (called covering) and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money.
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28 Dec 14
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What Is Short Selling?
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The account that's set up is either a cash account or a margin account
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Short selling is the selling of a stock that the seller doesn't own.
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The shares are sold and the proceeds are credited to your account.
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22 Oct 14
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a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered
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The shares are sold and the proceeds are credited to your account. Sooner or later, you must "close" the short by buying back the same number of shares (called covering) and returning them to your broker
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22 Aug 14
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13 Aug 14
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Brokers are most commonly used. They serve as an intermediary between the investor and the seller and often charge a fee for their services.
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Conversely, when an investor goes short, he or she is anticipating a decrease in share price.
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Brokerages can't sell what they don't have, so yours will either have to come up with new shares to borrow, or you'll have to cover
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02 Jun 14
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When using a broker, you will need to set up an account. The account that's set up is either a cash account or a margin account. A cash account requires that you pay for your stock when you make the purchase, but with a margin account the broker lends you a portion of the funds at the time of purchase and the security acts as collateral.
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31 May 14
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Short selling is the selling of a stock that the seller doesn't own. More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered.
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29 Jan 14
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Short selling is the selling of a stock that the seller doesn't own.
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buying back the same number of shares (called covering) and returning them to your broker
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This is known as being called away
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03 Sep 13
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08 Apr 13
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05 Feb 13
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More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered. That may sound confusing, but it's actually a simple concept. (To learn more, read Benefit From Borrowed Securities.)
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Sooner or later, you must "close" the short by buying back the same number of shares (called covering) and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money.
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22 Jun 11
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A cash account requires that you pay for your stock when you make the purchase, but with a margin account the broker lends you a portion of the funds at the time of purchase and the security acts as collateral.
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proceeds are credited to your account
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interest is charged on margin accounts, so keeping a short sale open for a long time will cost more
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07 Mar 11
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keeping a short sale open for a long time will cost more
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This is known as being called away. It
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06 Oct 08
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The Basics
When an investor goes long on an investment, it means she has bought a stock believing its price will rise in the future. Conversely, when an investor goes short, he is anticipating a decrease in share price.
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<!--printable = ON--><!---->Short selling is the selling of a stock that the seller doesn't own. More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered. That may sound confusing, but it's actually a simple concept.<script language="JavaScript" type="text/javascript"> <!-- OAS_AD('Block'); //--> </script>
<!---->Still with us? Here's the skinny: when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later you must "close" the short by buying back the same number of shares (called covering) and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money.
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