posted on September 17, 2001 05:29:45 PM new
This question has really been bugging me and
I'm hoping that there are some knowledgeable
people who know about stocks and can answer
this question:
If someone is buying stock (let's say in ebay---attempting to keep this OT) and they know that ebay will be taking a dive shortly,
they may decide to "sell short." Apparently, if ebay does do badly this will make money.
However, if ebay does great I assume the
purchaser will be in big trouble.
Could someone explain the concept of selling
short to me? This question is bugging me
for 2 reasons:
1) I was watching the film MY MAN GODFREY
which takes place in the depression.
The owner of the business was losing
tons of $$$ and stock in his business.
His friend knew that the business was doing poorly so he "sold short", made money and
regained most of the stock which the business
owner lost. He gave the stock back to the
business owner.....Everyone is Happy... The END
2) Apparently, Bin Laden has been making money by "selling short" in either
the airline industry, insurance companies, or both?
I hope someone understands this concept better than I do.
I"m not trying to be a nuisance by asking
such a question which may not directly be related to ebay, however,
1) Many intelligent people appear to hang out
here.
2) Some of those people appear to be very good at understanding ways of making money.
posted on September 17, 2001 06:31:30 PM new
First Buying a stock because you know something about the companies econmic health weather you know it is about to rise or about to fall and selling it Short is insider tradeing illegal.
and as it looks Bin Laden will never collect on these ill gotten gains either.
