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Shorting is in essence borrowing stock from a broker and selling...

  1. 2,463 Posts.
    Shorting is in essence borrowing stock from a broker and selling them with the idea of buying them back at a lower price - you then return the stock to the broker and pocket the difference between what you sold them for and bought them back for - e.g - you borrowed 50,000 and sold them at say $5.0 neat expecting a fall.- i.e. sold 50k for 250000 ..........the stock price fell and you bought the 50K back at say 4.80 - cost you $240000 ---- - ou return the 50K of stock back to the broker and pocket the $10k difference (less costs etc) -thats my simple version of the concept anyway.

    One can perhaps understand someone doing that when the stock is at a high if they dont want to actuall sell the stock they hold (and in turn trigger a capital gain bill on the whole amount or other tax reasons) but to be doing it still now while near its lows --- the only reason I can think of is that someone is trying to accumulate while in the lower end of the price range and is borrowing stock tosell short in an effort to keep the price down while they accumulate a lot more than they have short sold.

    Yep dangerous stuff - but what other reason could they have. Surely it would be far more dangerous to be actually short selling with view to rebuying lower when the share price is already heavily discounted to its recent highs -

    Can think of no other reason to continue to short sell except that by artificially keeping the price down by selling borrowed stock you might be able to accumulate a hell of a lot more than what you have borrowed - seems to me someone has been doing thier best to cap her for bloody months now and if been playing it that way they could pay back what they have borrowed a hundred fold by now - well almost.

    now I reckon they has to be some out there who read this thread who have played games behind the scene for clients etc and have far better idea whats happening so if you can give a better hypothesis - am sure we are all ears

    (anyway thats my thoughts after a few hours at the pub - might have very different ideas when I sober up in the morining lol)

    thing I can think of to account for the shorting at this

 
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