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/biz/ - Business & Finance

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27683090 No.27683090 [Reply] [Original]

So basically it's a promise to pay back a company for the price it is worth at a certain date in the future? So if the value of the company goes down, then you have to pay back for a cheaper price so you get to pocket the difference compared to the price you promise to pay at?

>> No.27683176

>>27683090
Pens sell for $20
I borrow your pen and sell it
The price of pens drops to $10
I buy it back
I give you your pen and pocket the $10 profit

>> No.27683332
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27683332

>>27683176
So you're literally borrowing stacks?

>> No.27683476

>>27683090
> borrow stock from broker on the condition that you pay stock back with interest
> Sell on market with the intention to drive price down and alert boomers that red is bad, must sell
> Price falls to cheaper price
> Buy back stock after boomers sell for cheaper price
> Give broker stock back + interest
> Pocket the difference from where you sold to where you bought. I.e. sold at 20, buy back in 13

The argument for why this is legal and useful to society in anyway is because it apparently properly values a company. You don't necessarily need to sell and people can buy the dip and whatever driving force when properly values the company. I personally think it's retarded because you apparently can borrow more shares than available; at that point you're just manipulating the market.

>> No.27683510

>>27683090
jews