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| May 2, 2020 | » | Wall Street University: USD 101
3 min; updated Sep 5, 2022
Short Selling Say $A shares are selling at $100, but I think they’re overpriced. So I borrow 10 shares, pay my brokerage interest and post some collateral. I then sell the shares for $1,000. Whoever buys my shares has no idea that I do not own them. In a naked short, I do not actually borrow or ensure that the security can be borrowed within the standard 3-day settlement period.... |