RE:so, this shorting thingKeeler wrote: from what I read,
a guy 'borrows' shares for a certain time period, say 30 days -
1,000 shares at $1.00 = $10,000
and he sells the shares.
He hopes that the stock will fall in the next 30 days, say to .50 cents
1,000 shares at .50c ents = $5,000
so he buys them and repays his 1,000 shares, so he's profited $5,000.
Is this correct?
Seems to me a shorter then would promote/pump a stock in aneffort to get the price up - then short as above?
So when quinlash and tonto say Hexo sales will be $400 million to $624 million, when in reality they were $190 million - that might eb an example of a shorter getting the share price up, so he can then short it as above?
Keeler ,
If you are asking if you are wrong ?
Yes , you are wrong ,,,
If a guy " borrows " 1000 shares at $ 1.00 = $ 1000 ( NOT $ 10,000 )
If at later time Buys 1000 shares at $ .50 cents = $ 500 ( NOT $ 5,000 )
There is also a .03 % to 3 % fee depending on the hedge fund or brokerage
There is also a 10 % to up to a 20 % interest which will have to be paid ,,.,
Also people should be aware that either " pumping " or " bashing " a stock on Stockhouse
billboard will make a difference as there might be 100 readers on a good day and will
not move the stock price in either way ...
It's the financial institutions and brokerages that can " short a stock " or " buy " a stock enough to move the stock price..
and they don't come on stock house looking for advice from posters ...
Vegas