What if i sell share which i dont own?

Answer 1

You are allowed to do that -- but first you need to borrow the shares from someone who has them. Your broker won't release the funds to you immediately. Instead, they are held in escrow. Eventually, yo umust buy back shares in the market & replace the ones that you borrowed. At that point, you can take any profit that you made.

This process is called Short-Selling.

If you try to sell shares without selling them, then youwill run into problems. At settlement, you would usually get your money and deliver the shares to the broker. If you fail to deliver, then the sale will be broken -- and you will not receive the money for the sale. There may be a fee for failure to deliver.

Answer 2

Not sure if you mean going short...betting that the market will go down. If that's the case the brokerage would borrow the shares for you and hold them...you would be short (SOLD) and they'd be long...If the market for those shares went down you'd buy them back at some point take your profits and run. Now, you can only go short by having a margin account...you can't short in a cash account. Better to buy PUT options if you want to bet on a particular security going down...less risk...if it goes up and up...you could loose a lot of $$$ buying it back eventually. With a put you only loose the amount you pay for the option. You don't have to have a margin account to trade in options.

Answer 3

Yes, you can short sell a stock. You would ask your broker to borrow shares and sell them in the open market. You would cover your position by buying an equal amount in the future.

Answer 4

He who sells what isn't his'n, must buy it back or go to prison.

You borrow it, sell it, wait for a price drop, buy it back. Pay interest on what you borrowed.

Answer 5

See below.

Answer 6

well, you won't get the money, will you? You need to produce the share certificate to get the money.

Answer 7

It's called fraud.