Can you explain Shorts in a stock to me better and how do I start to get involved in it?

Question

I know shorts are shares somebody borrows from a bank when they think a stock is declining and then they sell the shares at a lower price and give them back to the bank. I'm interested in getting set up to do this, do brokerage firms do this also? Thanks

Answer 1

Yes, brokerage accounts allow this, though in order to take a short position you must have a margin account. Shorting is simply the act of selling first and buying second, instead of going long, which is where you buy first and sell second. Obviously you would sell first if you believed that the share price will decline and you can buy the shares back later at a lower price. Whether you are long or short, every closed-out trade includes both a buy and a sell, the only thing different is the order in which these actions occur.

In fact the SEC is removing the 'uptick rule' for short selling, which will make short selling that much better.

Answer 2

Going short is selling the share at a price you think is high and trying to buy it when the prices go down. Also called short selling. Whether it is allowed or not depends on the country where you are residing.

Answer 3

Here's an excellent web site. It's designed for the non-expert and provides good answers. They have a newsletter, sign up and you can learn a little each day.
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Answer 4

If you click on the bottom link, it will give you excellent information on short selling.

Answer 5

Open a brokerage account at Zecco with at least $2,000.00 USD.

Answer 6

Yes, they do. But you will have to certify and probably prove to them that you are financially able to deal in shorts.