How does stock shorting work?

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Specifically, how does one “borrow” or “sell” stock they don’t actually own?

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Typically when you’re borrowing the stock, you’re signing a contract of sorts that says you will pay a certain fee up front plus interest on the value of the stock until you return it/the contract expires. The person lending the stock typically comes out ahead regardless since they get some money and the guarantee that their stock will be returned.

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