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stocks and shares How do you sell short?

Stocks and shares How do you sell short on shares. What is the principle behind selling short?

Short Sale definition (official)

http://www.sec.gov/answers/shortrestrict.htm

In Short (no pun intended):

1. Enter “short” trade.

2. Hope the stock falls. Stock falls you Make Money; stock goes up you lose money.

3. “Cover” to buy back the short – effect closes the position.

More detailed answers:

“Forgive me for sounding naive, but why exactly does short-selling exist?”

http://answers.yahoo.com/question/index;_ylt=AukDa.Y74JIE_GsaEQOKxWvty6IX;_ylv=3?qid=20080919091820AA721Tt&show=7#profile-info-jiMAtaCraa

“If I short a stock and the price goes up, what if person who bought won’t sell back? No buy to cover?”

http://answers.yahoo.com/question/index?qid=20090424050917AApWiOJ&r=w#BaN_M2D0AnhGUqjJm65y

“What are short sellers and speculators when speaking of stock market..?”

http://answers.yahoo.com/question/index;_ylt=ArJYWkvfVYfmTTERXpdy28rty6IX;_ylv=3?qid=20080714063812AAH4STg&show=7#profile-info-fcCDoW3saa

Shares of Stock Explained


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