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Topic: Short selling


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In the News (Tue 18 Jun 19)

  
  Short Selling
The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller.
Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short.
Selling short is the opposite of going long.
www.investopedia.com /terms/s/shortselling.asp   (365 words)

  
 Short Selling: Introduction
Shorting is the opposite: an investor makes money only when a shorted security falls in value.
Short selling involves many unique risks and pitfalls to be wary of.
The mechanics of a short sale are relatively complicated compared to a normal transaction.
www.investopedia.com /university/shortselling   (312 words)

  
 Short Selling - InvestorGuide University
Short selling (or "selling short") is a technique used by people who try to profit from the falling price of a stock.
Short selling is a very risky technique as it involves precise timing and goes contrary to the overall direction of the market.
When you sell short, you're not just betting on what the stock is worth, you're betting on what the market will be willing to pay for the stock in the future.
www.investorguide.com /igup1-short-selling.htm   (1059 words)

  
  Short Selling - Short Sell Stock
Short selling or selling stock short is the sale of a security which is not owned by the seller.
Short selling is a common trading method due to the belief that stocks fall faster than they often rise.
Short selling is generally done in a weak market or in a downtrending stock as a stock breaks support, causing prices to fall.
www.thestockbandit.com /short-selling.htm   (173 words)

  
  short sale Definition
Borrowing a security (or commodity futures contract) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker.
Short selling (or "selling short") is a technique used by investors who try to profit from the falling price of a stock.
SEC rules allow investors to sell short only on an uptick or a zero-plus tick, to prevent "pool operators" from driving down a stock price through heavy short-selling, then buying the shares for a large profit.
www.investorwords.com /4556/short_sale.html   (413 words)

  
 Short Selling at Trade10.com- The science of trading market momentum for stocks, options, futures and bonds.
Short Selling is the act of borrowing stock to sell with the expectation of price dropping and the intent of buying the stock back to replace at a cheaper price.
Short interest is a measure of the total share volume that is currently short the stock.
Short interest can be a source of demand if buyers become enthusiastic for the stock and price rises prompting some short sellers to reduce risk by buying back stock to replace and closing the short position.
www.trade10.com /short_selling.htm   (1201 words)

  
 Prudent Bear Funds, Inc. - Press Room - Short Selling Explained   (Site not responding. Last check: )
An investor may short a stock because he believes it is overvalued or because there is fundamental problem with the company.
So while the longs are selling, the shorts are providing liquidity to the market by "covering their shorts" and buying stock back.
Shorting is a common (and necessary) practice in the commodities markets, and just as in the commodities markets, short selling enhances market efficiency and liquidity (see above).
www.prudentbear.com /press_room_short_selling.html   (907 words)

  
 Short selling - Money - Business - theage.com.au
Short selling, in short, is the practice of borrowing shares from your broker to sell on the market with a view to buying them back at a lower price a few days later.
Used in this way, short selling acts as a kind of insurance and is commonly employed by hedge funds and absolute return funds to manage risk.
Most short positions need to be settled in three days, so the price of the shares needs to fall within three days if you are to make a profit.
www.theage.com.au /news/money/short-selling/2005/08/15/1123957999295.html   (447 words)

  
 Naked Short Selling and the Stock Borrow Program   (Site not responding. Last check: )
Thompson: Short selling is a trading strategy where a broker/dealer or investor believes that a stock is overvalued and is likely to decline.
While naked short selling occurs, the extent to which it occurs is in dispute.
Thompson: Naked short selling, or short selling, is a trading activity.
www.dtcc.com /Publications/dtcc/mar05/naked_short_selling.html   (1956 words)

  
 DAYTRADERS.COM - daytrading, daytrade, investing and stock market information day traders day trading, active traders, ...
Shorting a stock, or short selling, means to sell a stock which you do not actually have ownership of so you may profit from its potential decline in price.
Shorting shares of IBM, MMM or GE may not be much of a feat, since stock is generally readily available in many accounts across the country for these types of larger companies.
Should you attempt to sell borrowed stock, you may find that you have to wait for what is called an "uptick" in some cases.
www.daytraders.com /short_selling.html   (1852 words)

  
 New Short Selling Regulations
Short Selling is an investment strategy which makes a bet that a company's stocks is overpriced and will likely fall.
In particular shorts can pick on small emerging companies and drive their stock to zero, thus preventing capital raising and frightening other longs in the stock to abandon their position, not based on the fundamentals, but only on the manipulation of the stock.
Shorts were able to get away with this practice because only those firms that were NASD members were required to comply with delivery rules.
www.thebullandbear.com /articles/2004/0304-geist.html   (1028 words)

  
 The art of Short Selling
If the stock you shorted goes up in price, or the value of the stock you are using as collateral goes down in price, so that your collateral is less than the "maintenance" requirement you will be required to add money to your margin account or buy back the stock that you sold short.
Short selling is also used to protect portfolios against erosion due to a broad market decline.
By shorting carefully selected stocks that are priced near their peak but that will fall sharply if the market falls, an investor can use the profits from the short sales to help offset losses in his long position to protect the value of his portfolio.
www.tradersedgeindia.com /short_selling.htm   (1202 words)

  
 Short Selling Gets New Acceptance | theledger.com
"Short selling," thundered Rep. Adolph J. Sabath, D-Ill., "is the greatest evil that has been permitted or sanctioned by the government that I know of." It was, in short, the cause of the Great Depression.
Those most exercised over the evils of shorts - and their comments sound very much like some of the bombast of 1932 - now say they have nothing against legitimate short selling.
An analysis he submitted indicated that the highest volume of naked shorting in his stock tended to be at the highest prices, which would seem to be an indication that the shorts knew what they were doing.
www.theledger.com /apps/pbcs.dll/article?AID=/20061209/NEWS/612090370   (778 words)

  
 Prudent Bear Funds, Inc. - Press Room - Short Selling Explained
An investor may short a stock because he believes it is overvalued or because there is fundamental problem with the company.
So while the longs are selling, the shorts are providing liquidity to the market by "covering their shorts" and buying stock back.
Shorting is a common (and necessary) practice in the commodities markets, and just as in the commodities markets, short selling enhances market efficiency and liquidity (see above).
www.bearcase.com /press_room_short_selling.html   (907 words)

  
 MrSWING swing trading & short selling
Selling short would have allowed the investor to take very profitable advantage of the opportunity presented by the overpriced Zitel stock.
Short selling is also used to protect portfolios against erosion due to a broad market decline.
By shorting carefully selected stocks that are priced near their peak but that will fall sharply if the market falls, an investor can use the profits from the short sales to help offset losses in his long position to protect the value of his portfolio.
www.mrswing.com /short/shortselling.html   (1465 words)

  
 Short ALERT Research : independent short term selling tools and anylysis for hedge funds
Short ALERT Research takes a different tact that is evident in everything they do--- a deliberate emphasis on taking a creative approach to the analysis.
Short ALERT identifies over valued and fundamentally flawed companies based on a number of criteria that it has utilized over the years.
It was designed to provide a short cut to more actionable and profitable short ideas as well as an effective tool to audit long positions.
shortalert.com /index.html   (516 words)

  
 Short Sell - Short Stocks - Stock Pick - Short Selling - Top 10 Short Picks - Free Trial
By law, Mutual Funds can not short sell more than a certain percentage of their assets, whereas you can short sell in bear markets and grow rich in a faster pace, while big institutions are still unloading their stocks to the market.
One of the strategies that short term traders use to pick their stocks is to follow where the smart money is flowing.
Sell the stocks on the way up, it is fine to leave some money on the table.
shortsellstockpicks.com /tradingtipsarchive.html   (4865 words)

  
 Short Selling
Short selling tends to be counter-intuitive to most investors and, as a result, only a few sophisticated money managers and knowledgeable individuals use it as an active investment strategy (as opposed to a hedging technique).
The stocks sold short by the program are selected by a proprietary 'Vulnerability Index' based on such indicators as industry group relative strength and fundamentals, performance rating, volume accumulation, insider buying and selling, and earnings disappointments; and including an array of triggers ('short covering disciplines') to cover, monitor and reduce short positions.
After a long bull market, shorting is tempting, particularly when the market shows all the cultural signs of being in a form where there is universal enthusiasm on the upside, and double digit forecasts are common in the face of news that appears to be worsening.
www.deanlebaron.com /book/ultimate/chapters/short.html   (1728 words)

  
 Short Selling - Search Results - MSN Encarta
Short Selling - Search Results - MSN Encarta
Short Selling, in finance and commerce, form of speculation based on anticipation of a decline in the prices of securities and commodities.
A river port and road and trade center, Niamey is the southern terminus of a...
encarta.msn.com /Short_Selling.html   (192 words)

  
 Day Trading: Short Selling
Shorts like any trade that you initiate, are only as risky as you allow them to be.
In truth, the only significant risk in the process of shorting (for short term traders with good risk control)is falling victim to the amateur view that it is too risky and should be avoided.
Brokers do not pay interest on the funds from the short sale and the funds will not be swept (as they are normally)into the customary money-market account where they would gain interest.
en.allexperts.com /q/Day-Trading-2242/Short-Selling.htm   (626 words)

  
 Short Interest Stock Short Selling Data For Stocks - ShortSqueeze.com
The possibility of a short squeeze is one reason some analysts look at a high amount of short interest as a bullish indicator.
is to provide Short Interest stock market data and services to the investment and stock trading community, so our members will be better informed of short selling in the market and gain from the advantages that can be achieved from this valuable stock market data.
Quotemedia is NOT the source of short interest data.
www.shortsqueeze.com   (276 words)

  
 FSA proposes greater disclosure re short selling   (Site not responding. Last check: )
The FSA sees short selling as a useful underpinning of market liquidity, but sees a case for greater disclosure relating to short positions and will bring forward proposals in the autumn.
By short selling, I mean selling shares one does not own, and borrowing them to meet obligations to the purchaser.
These figures provide a reasonable proxy for the level of short selling to go short of a share for any length of time you typically have to borrow the stock.
www.fsa.gov.uk /Pages/Library/Communication/PR/2002/078.shtml   (935 words)

  
 Research - Short Selling May Affect Stock and Bond Prices - Stanford GSB
Terrorist groups were suspected of profiting from their foreknowledge by taking short positions in financial markets.
They borrow the stock, sell it, and later buy it at a lower price to return it to the lender.
This strategy of selling high and then buying low depends on a properly-functioning securities-lending market—stockholders who are prepared to loan out their equity for others to trade with, in return for cash collateral.
www.gsb.stanford.edu /news/research/finance_shortsell.shtml   (1192 words)

  
 Taking Care of Business with Doctor J   (Site not responding. Last check: )
The investor borrows the stock from a broker, sells it, and eventually buys it back on the market to return the borrowed shares to the broker.
Short selling is an excellent way to make money, but remember a couple things:
Short Selling Basics - a tutorial looking at the basic aspects of short selling and the risks involved.
www.tcbmarkets.com /terms/s/sellingshort.asp   (177 words)

  
 Crying Foul In Short-Selling Land - Forbes.com   (Site not responding. Last check: )
Short-selling, in which a trader borrows stock and sells it, betting it will decline, and he can buy it back at the lower price and pocket the difference, is a perfectly legitimate trading strategy.
There were about 234 U.S. stocks that had large outstanding naked short positions as of June 1, according to data provided by the New York Stock Exchange and Nasdaq, which have been required to report these positions since January 2005.
The entire issue is becoming so contentious that even hedge funds who engage in naked shorting are beginning to cry foul--that their prime brokers are forcing them to pay for borrowed shares that they never actually borrowed.
www.forbes.com /2006/06/20/naked-short-selling-overstock-cx_lm_0621short.html?partner=yahootix   (921 words)

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