ANSWERS: 2
  • As far as I know that is an archaic term used to described short selling. In other words, you are selling a stock that you do not have, hoping that the price will be driven down so that when you "cover your short" by actually buying the stock, you will make the difference as your incentive. One question: are your study habits a bit on the weak side? ;-)
  • You're borrowing not from the market in general, but from a large firm that already holds the stock. Not every customer can do this.

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