Part 4 of 12 part Short Story on Short Selling series. Experienced short sellers bring a wide field of vision to the market. They carefully examine and consider each influencing factor. Then before taking action they look at the combined effects of all factors. Only after being convinced that the odds have lined up in their favor will they take action and sell a stock short. Today we touch on the first two major factors, market facts and corporate facts.
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Part 2 of 12 part Short Story on Short Selling series. Investors that short a stock, profit by selling shares they don’t own. Without your knowledge, a short seller may have borrowed stock that you own. The loan comes from your stockbroker’s inventory which includes the stock you hold.