HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
I think that is how it's "virtually" done on HSx, IPO stocks remaining don't count shorted shares -good (IMO) explanation inside-
Where the term "short selling" came from is the stock market, for those who don't know.
An investor with tons of cash and stocks, and is certain a stock is going to go down, but wants to make more of a profit will borrow shares of stocks from others at a percentage of guaranteed interest + same stock payback. This method was perfected in the 1920's, and was a non-significant part of Black Friday.
Investor then sells all stocks, his and the borrowed ones (which, by definition are held long), causing the value of the stock to decrease. When the stock has decreased enough in value, the investor re-buys the stock at the new, lower price, having $dropped * shares in "Extra Money", which is more than enough to give back the borrowed stocks plus iinterest, as well as hold more shares than he did before, with money left over.
HSX does something similar, but acts as the "borrower" of those stocks, so when a stock is shorted, you borrowed a stock from the infinite HSX bank of stocks, and sold it, hoping to rebuy it at a profit when the price of the stock goes down. If the price of the stock goes up, the value is -$xxx,xxx, which means you still need to pay for the stock you "borrowed" at a lower price, but at the current market price, even though it is through the virtual HSX entity.
Thus, a large number of people holding the stock and selling, or a large number of people buying the stock will have a greater impact, as it is "Real Money" moving into/out of the stock. When you short a stock, you are using HSX's money, with the promise to "make good" on it later, therefore, it doesn't change the price nearly as much, since HSX has infinite shares.
Help me understand the calculation for a OW price move {nm} May 03, 03:22
how can it have more short than long but only move 1%? May 03, 03:23
Just because players buy or short any security, does not mean the movement price goes up or down every time... May 03, 07:01
I think that is how it's "virtually" done on HSx, IPO stocks remaining don't count shorted shares -good (IMO) explanation inside- May 03, 10:44
shorting a stock actually increases the supply, as you are selling stock that you dont own....but my question... {nm} May 03, 17:33
I guess I do not understand your question, then. {nm} May 04, 19:27
In real markets, shorting helps to stabilize the stock price. May 05, 12:58
Regarding your IM May 06, 13:50