Dashboard
Review Topics
Drills
Practice Exams
Flashcards
Vocabulary
Surfing dinosaurs in powdered wigs are awesome...but not in your essay. Those responses should make sense.

Short Margin Accounts

Dashboard > Chapter 10: Trading on Margin > Short Margin Accounts

Short Margin Accounts

Short Margin Accounts

There are short margin accounts as well. They function in much the same way. The difference, though, is that you're betting that the stock will go down in price, rather than up. The concept is simple: you sell a stock that you don't currently own, and if you're right, you buy it back later at the lower price. The difference between the selling and repurchase prices is your profit (we ignore trading costs and taxes). Tiger asks, "How do you sell stock that you don't...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

$14.99
Next: Excess Equity in Margin  
  Prev: The Magnifying Effect of Margin