- 5.8K opinions shared on Other topic.
+1 y“Shorting” stocks. I don’t understand how it works. My old man was trying to explain it to me, and from what he was saying it sounded like my stockbroker could make some sort of agreement to sell MY held stock in whatever company to some hedge fund manager in the future at some lower agreed upon price in the future in anticipation of an increase in the stock price. So like $5 share gets promised to be sold next month for $2 to a hedge fund broker predicting that the stock will then be worth $10, or something like that.
I might be botching some of this, the conversation was a couple years ago, but the main thing I don’t understand is that MY stock apparently gets sold to someone else, without my direct consent beyond generally entrusting my money to them. I don’t know, just seems crazy to me that broker who’s supposed to be a fiduciary with my best interests in mind can be slinging my stocks to someone else. Like if I own the stock, I own the stock, so how can they sell it if it’s not for sale? Getting confused all over again, lmao.Also, the ending of The Shining. I don’t get it😂😅
12 Reply- +1 y
If you think of buying/selling stocks as informed gambling then "shorting" a stock is just betting that a given stock will fail, rather than betting that it will win.
Imagine there are three guys. You're the first guy. You go to the second guy and say, "Hey I want you to loan me that stock you have. I'll bring it back later." And the second dude says, "Sure I guess I can do that, you seem like a trustworthy guy." Then you go to the third guy and say, "Hey look at this cool stock I have, wanna buy it?" And the dude says, "Ya know what, yeah. That looks like a good stock." So dude #3 buys it for say 10 bucks. You now have ten bucks and you owe one stock.
Now when you borrowed the original, you guessed that the stock would fall in value, so let's say you guess right and that's exactly what happens.
Now that the stock is down, dude #3 doesn't want it anymore. So you buy it back, but at the new lower price, let's say 4 dollars. Now you have $6 and one stock. You go back to the second guy and say, "Here's your stock back" and return the stock.
Now you have six dollars more than you started with, no stock, and both the other guys are probably a bit annoyed that you managed to make money on them when they were already loosing money from their stock devaluing. (Of course if you guessed wrong and the stock went up, then you would have lost money when you went to buy the stock back, so you still have to be good at guessing regardless of if you're betting up or down.)
But regardless, that's basically what's happening when your stocks are getting shorted. I don't know about the actual laws and policy behind it, I just watched that one 2008 economic crisis movie (The Big Short, I think?) and read a couple of articles online. 🤷♀️
Most Helpful Opinions
- 4.2K opinions shared on Other topic.
+1 yWhy do they call it fasting when it goes so damn slow?
If knees bent the other way, what would a chair look like?
Why do they call it, "fast food" when it takes so long to get it?
If you have a funeral at night, do the cars in the procession turn their lights off?
Do women pee in the shower, also?
If Fred Flintstone knew the large order of ribs was gonna tip over his car, why did he always order them at the end of every show?
Why is easy listening music so hard to listen to?
I don't understand powdered water: just add water.
When cows laugh, does milk come out of their noses?
Is the Sun solar-powered?
Why do cowboys wear two spurs? If one side of the horse goes, doesn't the other?
If women ran the Pentagon would missiles be shaped differently?
What makes Teflon stick to the pan?
Why is it called, "rush hour" when your car just sits there?
Why is Wed. called, "hump day" when everybody gets laid on the weekends.20 Reply
1.1K opinions shared on Other topic. Why there are so many "what does it mean" questions about the same one or two things... as if no one knows what the "search" button is for...
24 Reply
- 846 opinions shared on Other topic.
+1 yThe labels on pillows. Do we be brave and remove the offending tag telling us not to cut it off? Or rip it's lifeline?
33 Reply- +1 y
Correct. lol It's fun to milk it though.
What Girls & Guys Said
Opinion
17Opinion
- 445 opinions shared on Other topic.
+1 yTaxes.
We're taxed when we make money.
Taxed again when we spend it.
Taxed when we save it.
Taxed when we invest it.
Taxed when we die.
Taxed when we buy property with money that was already taxed, and taxed again yearly for owning said property.
Taxed on the cars we use to drive to our jobs to earn money to pay those taxes which are taxed when we get paid. Taxed to drive that car on a public roads which already have billions in taxpayer dollars allocated to them to be maintained and they're still falling apart...
Taxes are gay. Extremely unquestionably gay.27 Reply- 1 y
And your alternative to a funded government would be?
- 1 y
An unfunded one that leaves us alone and doesn't steal our money to give to illegals and terrorists.
- 1 y
How would you create and administer public goods?
- 1 y
What public goods. Everything is produced and sold by private corporations.
- 1 y
The roads are disintigrating and the schools aren't teaching kids anything useful. Money clearly well spent.
Taxation is still theft even if they spend it on you.
If I stole your wallet and bought you McDonald's with it, it's still theft.
How many times can they tax the same dollar until you don't actually get any of it for yourself. - 1 y
"You taxation is theft" morons do not understand the term civilization. Go live a non communal existence. Sell it on PPV. Id watch your decline and laugh my ass off! JFC! Were social creatures! That NECESSITATES giving up some individual rights for the greater good. Civitas = "of the city" meaning CIVILIZATION, the MOST IMPORTANT ENGINE FOR HUMAN PROGRESS requires us to band together under group rules we call laws. GTFO with your Hobbesian BS!
- 1.5K opinions shared on Other topic.
+1 yLife
How people support trump
How dumb my fellow citizens are
Why bigotry, racism is still a thing
Why people oppose green initiatives
Why monopolies aren't broken up
Why the tax code is a joke
Why people dont vote
Why there is a war on women
Why there is a war on poor people
Why people criminalize vices
Why people revere us constitution
Why people enlistbin military
Why usa isn't more empathetic
Why distrust if intellectuals
Why religion still exists10 Reply
+1 yBlockers. People who easily block.
Religious folk. This is an invitation to talk not to fight.
Feminism. That selective equality.
Me. My thoughts and goals and my journey towards them.41 Reply- 1 y
GREAT ANSWERS!! ❤️💯👍🏻
- 328 opinions shared on Other topic.
+1 yMen have me confused. Not dogs, not bears — Men, bless ‘em, one and all!!
32 Reply- +1 y
Thank you, darlin'! MWAH!
Why some people are saying that Trump faked his assassination attempt? One retired firefighter was killed and two others wounded. Trump was bleeding 🩸. What is going on?
25 Reply- +1 y
I can understand why people are saying that. It fits his motives to help win the election. By pretending they are after him. The shooter shot the teleprompter and glass hit him. So they feel he missed on purpose.
Who knows what happened, but i think he was a crazy democrat who registered as republican to try to vote trump out of the primary, it was one of the actblue attempts.
3rd question because some people have mental illnesses, and bad morales
- 1.2K opinions shared on Other topic.
+1 yWhy do people care that my socks don't match? How do they even notice? Why are they intently looking at my foot?
219 Reply- +1 y
My Golden Retriever used to steal warm socks from the drier.. in pairs. he'd even roll them up before sneaking off. All under your nose whole distracted folding. So clever. And proud of himself.
- +1 y
@dustybiker2 hahahaha
I kind of want a pet rat. They are basically dogs only easier. - +1 y
I've had a lot of pet rats among other rodents. Even have paw prints tattooed on my shoulder for them. They don't live long enough. Super smart and you get attached. I had to stop. Love them so much though.
- +1 y
@dustybiker2 how long do they usually live?
- +1 y
I don't know much about them but they seem pretty hardy
- +1 y
Two years if you get them as babies. They are prone to colds and very susceptible to tumors. Most of mine had them. It shortens their live even more.'
- +1 y
@dustybiker2 I was was off. I was thinking maybe 7 years
- +1 y
No. That is more a chinchilla. I've had three and love them too. They are a handful though. lmao
- +1 y
@dustybiker2 yeah I'll stick to my lizards lol
- +1 y
Clear sign you are OCD free
- +1 y
@dustybiker2 i just think it looks cute
- 1 y
Oh of course I was just being silly. Punky Bruster esk.
- 1 y
@dustybiker2 who?
- 1 y
Oh no you did not just say that...
- 1 y
@dustybiker2 sowwy
- 1 y
Punky Brewster... I spelled her name wrong 😂
- 1 y
@dustybiker2 still don't know😂
- 1 y
😂 You're hopeless. Modern tech at your fingertips. You're better than she ever was anyway.
- 775 opinions shared on Other topic.
+1 yI'm confused as to why my nuggies get excited by M-
13 Reply- 1 y
M-my future wife..
1.9K opinions shared on Other topic. Right now is an electrical issue but I'll figure it out
23 Reply- 1.2K opinions shared on Other topic.
+1 yFederal vs. State Laws
For example, rec recreational marijuana is legal in California, but federal agents can still raid you and arrest you for possession
10 Reply 909 opinions shared on Other topic. Confusion is a medical mental health diagnosis. I do not use that word to describe myself. I can be perplexed but never confused.
I am perplexed how many stupid people have money.10 Reply
+1 ythat you can get with this or you can get with that, but you better get with this cause this is where its at, type stuff
20 Reply731 opinions shared on Other topic. How socks go missing... like wtf
31 Reply
1 yThe hexagon shaped clouds on the pole of Saturn makes no logical sense does it?
20 ReplyWhy I don't have a pretty, sweet, dominate lady smothering me with her love. I deserve it.
10 Reply4.8K opinions shared on Other topic. they way the world is today, did parents forget how to bring up their children to respect other
20 Reply
Anonymous(45 Plus)+1 yBiden receiving 81 million votes.
I’m only confused about how much Democrats cheat at everything.11 Reply- 1 y
Simple math
Simple logic
Two things that MAGA is REALLY bad at!
+1 yZombie state/Zombiefied People! 🤦♂️
20 Reply2K opinions shared on Other topic. Why tweakers are so shady
20 Reply791 opinions shared on Other topic. Why people can’t/don’t have more empathy
20 Reply
+1 yHow women think!!
20 Reply
1 yHumans
20 Reply
Confused... what is it?
Learn more
We're glad to see you liked this post.
You can also add your opinion below!
Girl's Behavior
Guy's Behavior
Flirting
Dating
Relationships
Fashion & Beauty
Health & Fitness
Marriage & Weddings
Shopping & Gifts
Technology & Internet
Break Up & Divorce
Education & Career
Entertainment & Arts
Family & Friends
Food & Beverage
Hobbies & Leisure
Other
Religion & Spirituality
Society & Politics
Sports
Travel
Trending & News