• geneva_convenience@lemmy.ml
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    2 days ago

    Basically you borrow a lot of stocks from someone and sell them directly.

    Then you must buy back the same stock in the future and give it back to them (and a bit extra).

    If the stock is cheaper in the future then you earn money. If it becomes more expensive you lose money.

    This is how stock traders gamble on stocks they don’t own but think will lose value. They will find a way to gamble on everything.

    • eldavi@lemmy.ml
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      2 days ago

      Basically you borrow a lot of stocks from someone and sell them directly.

      so this SOX thing is an entity that you borrow the stock from?