Question roughly selling stocks short.?
From what I understand going on for shorting is that you borrow a stock sell it soaring then when the price drops you buy it posterior, thus generating. But what i dont get the drift is exactly who you borrow the stock from and why there is not a charge for "borrowing" the stock.Answers: Your command of how short selling works is correct. Typically you borrow these shares from a broker. There is a "charge" associated to selling short, which is the interest rate. Because you borrow these shares, you have to do so on side-line, which requires you to pay an interest rate, typically the prime rate plus two or three percentage points. Therefore, you enjoy to consider your profit potential versus the interest rate, to generate what your real return would be. Just some thoughts, I hope these clarified your sound out.
Good luck!
Brendan Prewitt
A better alternative is to buy options. A beckon option give you the right to buy a stock at a particular price, and a put route gives you the remedy to sell at a expert price. If the stock price moves in your favor, the "intrinsic" expediency of the option increases. The allure of options is that you don't own to actually ever buy or trade the underlying stock - you can just market the option.
If the utility of the underlying stock moves in the wrong direction, the worst that can come up is that you never sell or exercise the chance, and it just expires worthless. You're never out more than the amount you spent buying the chance, so you know up front exactly how much your maximum potential loss is.
I recommend buying a book to read up on this - options are a great method to gain from a drop in stock price while hedging against potential losses. Good luck.
First you borrow the stock from a stock holder not the broker. The brokerage firm will "borrow" the stock from a client. BUT the client now and then knows his stock be loaned. The client can still sell his stock at anytime. If his stock is loaned the brokerage freshly borrows from another account.
The stock have to be delivered to the buyer of your short mart.
The buyer of your short stock may also sell it at anytime.
You must at sometime "buy to cover" your short mart.
There is also another possible charge to you. If the stock has a dividend due, it go to the person you borrowed it from and out of your explanation.
I HIGHLY recommend you do not short stock. It is VERY risky. I was short yesterday contained by a huge down market and I took a BIG tub LOL.
Good luck.
there is a charge,,,,,,,,,,,,,,
you borrow from your broker....he have to have the stock available to be shorted......
What are the reasons for company's stock to drop?
Answers: A stock is valued by the stream of income it produces and its price is based off its valuation. Income to shareholders comes in 2 forms, Dividends and Capital Appreciation. Anything that affects profits will, therefore, have an affect on the valuation of the stock. More accurately, anything that affects the markets anticipation of future profits will affect price.
Specifically anything that causes a decline in the markets anticipation of profits will cause a stock to decline.
There are lots of specific reasons, but here are the two general reasons:
1. General economic downturn (like practically all stocks are dropping, or all industry specific stocks are dropping)
2. Poor performance or problems with the individual company whose stock is dropping. For example they didn't earn as much as they were expected to, or a major recall was announced at a car company. things like that.
When Hindalco declared devident for Q3 of 2007?
Answers: there is no declaration of dividend by HINDALCO BOARD for quareter -3- 2007-08
no HINDALCO not declared any dividend for q3 of 2007