Question on short-selling

Current Events » in reply to SEC imposes emergency ban on short-selling

Eri — 9/19/2008 2:50:00 PM (archived)

I know what it's used for and think it's good they've temporarily banned it. However, how the hell does it work? I've read the explanations and I'm just not quite getting it. Can someone give me a concrete example of how it works, i.e. Joe borrows 10 shares of AT&T thinking it's going to go down. Does Joe pay for the AT&T? And what happens next?

Thankoo.

The whole thread (10 posts)

SEC imposes emergency ban on short-selling - Lindy - 9/19/2008 11:48:42 AM
- Question on short-selling - Eri - 9/19/2008 2:50:00 PM
  - re: Question on short-selling - JEKing - 9/19/2008 4:37:55 PM
    - Ah so! The light bulb went on. Thank you! - Eri - 9/19/2008 11:38:08 PM
    - Banning ALL short-selling was dumb. Probably create a market bubble. (n/t) - TB - 9/19/2008 4:52:39 PM
      - They tried a partial ban to protect a few select companies earlier.... - ARRELL - 9/19/2008 6:11:22 PM
        
        "Just fine with me" - TB - 9/19/2008 7:07:15 PM
        
        Pssssst, TB.... - Eri - 9/19/2008 11:35:00 PM
        
        So tell me, Eri - ER - 9/19/2008 11:46:09 PM
        
        "Precious metals, blankets, canned goods, ammo..." - Lindy - 9/19/2008 11:57:46 PM

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