LogFAQs > #949995519

metallica846 posted...

I am a layman on this stuff so Im still learning. From what I have read, investment firms get together and coordinate their positions and work together to do it and short companies. Eventually the company goes down and they make money? This Reddit stuff is just the public seeing the shorts and screwing them over for getting greedy.

You know more than I do.

nah short selling is a perfectly legitimate, (somewhat) regulated contract

just means they sell a stock that they don't own on day t with an agreement to deliver it on time t+n
if the stock is cheaper on t+n, they make money. if it's more expensive, they lose money. it is very risky because there is no real cap on how much they could owe on day t+n.
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These old bones live to learn her wanton ways:
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