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Difference between revisions of "Short sale"
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The profit is the difference between the price at which the stock was sold and the cost to buy it back, minus commissions and expenses for borrowing the stock. If the price goes up, however, the potential for loss is unlimited, because at some point the investor must replace the 100 shares of x he sold. | The profit is the difference between the price at which the stock was sold and the cost to buy it back, minus commissions and expenses for borrowing the stock. If the price goes up, however, the potential for loss is unlimited, because at some point the investor must replace the 100 shares of x he sold. | ||
Short sellers are in the minority, making up on average less than 5 percent of positions on the New York Stock Exchange.<ref>{{cite web|url=http://www.economist.com/displaystory.cfm?story_id=11591349|name="Short Selling: Nasty, Brutish and Short"|org=The Economist|date=July 31, 2008}}<ref> | Short sellers are in the minority, making up on average less than 5 percent of positions on the New York Stock Exchange.<ref>{{cite web|url=http://www.economist.com/displaystory.cfm?story_id=11591349|name="Short Selling: Nasty, Brutish and Short"|org=The Economist|date=July 31, 2008}}</ref> | ||
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