re: ####the death knell has sounded!!!!### Monogamy,
The only way to legally short a stock is to speak to a broker who has clients who are prepared, for a fee, to 'lend' you the required number of shares for a certain period of time.
You can then sell these shares(ie go short) and the broker will deliver the shares you have 'borrowed' to the purchaser's broker.
Before the time period expires, you are required to buy the shares back and deliver the shares back to the 'lender'.
So you are effectively selling shares now and agree to buy them back in the future.(ie same as buying and selling but in reverse order)
If the co. goes into liquidation in the mean time, you as the person with the short position could probably bid a shareholder for their shares at a negotiated price(obviously a low price), and then deliver up the stock while presumably pocketing a tidy profit.
A put option entitles the holder to sell the shares at a set price(exercise or strike price), normally on or before a specific date(expiry date).
SGW
sons of gwalia limited
