Short selling stocks - Risky business?
September 24, 2008 by Josie Kay · Leave a Comment
To put it simply, short sellers make money when the share price goes down. It goes a bit like this. Let’s say you own 1000 BHP shares and the current share price is $40 (total value = $40,000).
Because I am a risk taker, I will take on the role of short seller. I contact my broker who gives me, I mean borrow for a fee, your shares and then I immediately sell them on the stock exchange. I have pocketed $40,000. Read more
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