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Old 04-08-2011, 07:50 AM   #3712
DaFonz
RS has made me the bitter person i am today!
 
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Join Date: Apr 2002
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@3klipze: That's because it's a giant fraud. Somebody gonna get delisted soon.

@blkgsr: You're borrowing shares to sell so that in the future you can buy them back at a lower price.

For PUDA for example.. you'd sell 100 shares at $8.70 which puts your position at -100 shares.

Later, if things go according to plan, you buy those shares for oh.. $1 and voila, your position is now 0 shares and you have a profit of 100 * (8.7 - 1) = $770.
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