You sell shares you don’t own immediately by ‘borrowing” them from a broker and selling them—hoping you can buy them back at a future date at a lower price than you sold them. The difference in the repurchase price is the profit you make---or the loss you suffer if the stock goes up. As those tech stock kept going up for another year-to my absolute astonishment—I sold them for a loss, shaking my head all the way.
Then they popped in March 2000. Timing is everything. I saw it coming but what good did it do me?
Last edited by Ken Hill; 09/30/08 02:42 PM.
