Post by
kha341 on Jun 27, 2015 7:49pm
Short Selling
The Basics based on Investopedia
Short selling is the selling of a stock that the seller doesn't own. More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered. That may sound confusing, but it's actually a simple concept. Here's the idea: when you short sell a stock, your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later you must "close" the short by buying back the same number of shares (called "covering") and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money.
Short selling also requires that you put up margin. As with a margin buy (long) transaction, the percentage required varies depending on the eligibility of individual securities.
POP is an illiquid penny stock too risky to be “marginable”. It is unlikely that your broker has POP in its inventory to lend any material (worthy of any discussion) volume to you for short selling and thus it is also difficult for your broker to borrow any material volume from another source for your delivery. That is why there is no Short Position for POP.