What Is Short Selling in The Stock Market?
Were playing the stock market game in class and my group isn't doing to well. Were allowed to short sell a stock buty I'm not sure what that is.
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Answer by zman492
In the stock market short selling is selling shares of stock you do not own. If you believe the price of a stock is going to go down, and you want to make a profit from that price change, you can sell a stock short.
Sometime after you sell a stock short you will have to close the position by buying the same number of shares that you sold. This is called "buying to close" or "buying to cover".
Just as with any other stock, you determine your profit or loss by subtracting the purchase price from the sale price.
There are a lot of aspects I will not cover in detail. One important one is that if you sell a stock short you have to pay any dividends instead of receiving them. You also have to keep enough assets in your account to be able to buy back the shares that you shorted even if the stock rises a certain amount. This is called a margin requirement.
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11-073 London Underground C77 'surface stock' No. 5732 at Earls Court on District Line service 072 to Wimbledon
Image by Hectate1
18/05/11: I'm not great at LU stock recognition, but I think the number and the fact that it is a Wimbledon Branch working point to this being a C stock unit.
Orignal From: What Is Short Selling in The Stock Market? and 11-073 London Underground C77 'surface stock' No. 5732 at Earls Court on District Line service 072 to Wimbledon
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