Quote:
Originally Posted by leilomo
what does that mean exactly? how does that make the stock price of citi go up?
sorry...sort of a noob here.
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To short a stock, you borrow shares from your broker and sell it high. As the price of the stock falls, you buy it back at the lower price and return the shares to your broker. You keep the difference in price.
However, if you borrow shares from your broker, sell it and the price goes up, you have to cover. Meaning you have to return the shares you borrowed back to the broker. You buy it back at a higher price driving the stock price up even more.