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Short Selling
Short Selling
• Out on the sidelines is a process of borrowing funds to maximize the purchasing power of the equity shares guarantee that ..... And the sale of borrowed securities is to sell the stock before you buy, but not before borrowing .......
• Out on the sidelines is a tool to activate a optimists ........ And the sale of borrowed securities is a tool to activate a pessimistic ......
• Out on the sidelines curb a rise to rein in the future ........ And the sale of borrowed securities is a tool to rein in rein in a sharp decline ...... • Out on the sidelines is a tool to activate a optimists ........ And the sale of borrowed securities is a tool to activate a pessimistic ......
Q: What is the concept of Short Selling?
Short Selling is one of the mechanisms used by investors in the stock markets to achieve profitability in the case of the direction of stock prices downward, where it is believed most of the newly dealers in the stock markets that the only way to profit is to buy shares that are expected to rise in prices in the future, if the expected decline in share prices in general in the future was thought that the best way available to investors is to stay out of the market to avoid losses to achieve.
In the case of a system of Short Selling in the opposite happens resort Speculators to use this method if the predicted decline in stock prices in the market with the aim of achieving capital gains from the decline in stock prices. , Where traders sell these securities do not Eetmlkunha a market price basis and after a Bagtradha from other investors (for a commission) and then to buy from the market after a decline in price and what is the difference between the net value of the sale of such securities and the cost of borrowing to buy them in order to repay this loan as capital gains accruing to speculators that the use of the tool.
What is the difference between a Long Position and Short Position?
Said that the investor has a Long Position in securities if these securities has (whether equities or bonds) in the self-employed. On the contrary, where the investor is said to enjoy the so-called Short Position if the borrowing securities and selling them without re-operation to cover the purchase of the shares sold.
9:50 AM
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