I assume this is related to stocks and investing, but what does it mean short a stock? Like I’ve seen people asking if it’s time to short Netflix.
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Johnny has some apples. He agrees to let you borrow the apple for a month for a small fee, because Johnny thinks the price is going up, and he likes extra money. You take the apple an sell it right away for 3 dollars. because you think nobody’s buying fucking apples next week. These apples got worms. Next week rolls around and the price of apples is cheaper. Another week, the apple price plummets even cheaper. So you buy the apple back from the sucker who bought it from you – because he’s like “holy fuck I’ll take anything I can get for these apples, they’re worthless.” So he panic sells his apples back to you at a loss, you make the difference in prices, and then you bring the apples back to Johnny. Johnny doesn’t give a fuck he’s gonna hold his bag of apples for years until he eventually concedes, at which point the price will sky rocket and Johnny will by back in, a sad cycle that will eventually BK him.
Guess wrong ? the apple got more expensive? well you have to pick up the tab, and best believe Johnny wants his apple back. Don’t make Johnny come over there.
This is one way to short.
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