shorting, page-27

Imagine...

You buy shares in a company, obviously with the expectation the price will rise?

But...someone gives your shares to someone else, for a realatively small fee (which you do not get), who sells them with the view to pushing the stock price down...and you investment value with it!

They do of course eventually buy the stock back...and give it back to you...however in the process they have used your own shares to limit your immediate upside...and pocket profits in the process, which you also do not benefit from.

Think about that for a minute...in order to make money, they need to reduce YOUR profits...and need to use YOUR shares to do it!

It would be like renting your house out while you were overseas and pocketing the proceeds...but leaving holes in the walls and the furniture damaged for you to fix.

Cheers!