|
I know what short selling is, which is borrowing stock, selling it, buying it back later at (hopefully) a lower price. A friend mentioned the term naked short selling at dinner. What's the naked part? |
|
Naked short selling, means you are shorting shares you don't own. It is more risky- if you have to "cover" the short, meaning the price has gone up instead of down, and you don't own them, you have to go to the market and buy the shares at market price. Theoretically, your risk is unlimited, in that you have to buy them at whatever the price. Hmmm ... I didn't think you owned the shares anyway when you shorted. That's the whole point. You sell the shares first, then buy them back. I think naked short selling is something different.
(Apr 06 '10 at 01:08)
mbhunter ♦♦
From Wikipedia "Naked short selling, or naked shorting, is the practice of short-selling a financial instrument without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale."
(Apr 08 '10 at 10:55)
Dr Dean 1
|
|
OBAMA and Bernanke are featured in a movie--that totally explains naked short selling and hedge funds called "Stock Shock." Even though the movie mostly focuses on Sirius XM stock being naked short sold nearly into bankruptcy (5 cents/share), I liked it because it exposes the dark side of Wall Street and revealed some of their secrets. DVD is everywhere but cheaper at www.stockshockmovie.com |
When you don't where clothes.
But can I leave my hat on?
Probably your socks too.
"where" clothes? Where did they go, and why aren't you wearing any?