Is a short sale when you hold a stock for less than 1 year and 1 day?
What is selling short? Is this when you sell a stock before the 1 yr and 1 day? Thanks in advance
Best Answer
116 points
DumbInvestor answered 4 months ago …
Selling short is when you borrow shares from your broker to sell. The money from the sale goes into your account but now you are "short" (you owe the broker those shares). You hope for the stock price to fall so you can buy them back at a lower price to return them to your broker, (this is called covering) you keep the difference between the sale (short) and buy (cover).
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168 points
madman87 answered 4 months ago …
short sale means that you gain money when your stock is falling , you sale shares that you dont own and then after stock fall you buy them out, the diference from that is your profit.
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