Introduction of Short Selling

JennyFunny · 1 Introduction of Short Selling Tue May 24, 2011 11:58 am

JennyFunny

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Hi guys let me know you thoughts of this..

Slstock · 2 Re: Introduction of Short Selling Tue May 24, 2011 12:04 pm

Slstock

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SanjivFund wrote:Hi guys let me know you thoughts of this..

Tubal will be elated on this. I will leave him to comment. Which form of short selling were you referigng to?

JennyFunny · 3 Re: Introduction of Short Selling Tue May 24, 2011 12:28 pm

JennyFunny

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Where you bet against the price going down by selling a share you dont own
..for example JKH trading @ 299..feel price will go down so you sell shares at 299..broker credits your account..then if price falls you buy at new price(290) and settle accounts taking a nice profit of 9/= per share
However if price increase you buy at new price(302) and settle.but making a loss
hope it is clear now.. Very Happy

Slstock · 4 Re: Introduction of Short Selling Tue May 24, 2011 12:40 pm

Slstock

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SanjivFund wrote:Where you bet against the price going down by selling a share you dont own
..for example JKH trading @ 299..feel price will go down so you sell shares at 299..broker credits your account..then if price falls you buy at new price(290) and settle accounts taking a nice profit of 9/= per share
However if price increase you buy at new price(302) and settle.but making a loss
hope it is clear now..

Yes Sanjiv I see you what mean

You are referring to
http://www.investopedia.com/university/shortselling/

Not
http://en.wikipedia.org/wiki/Naked_short_selling
which might be a bad idea.

I will leave for the expert on this to comment further. Tubal.

manike100 · 5 Re: Introduction of Short Selling Tue May 24, 2011 3:03 pm

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slstock wrote:

Yes Sanjiv I see you what mean

You are referring to
http://www.investopedia.com/university/shortselling/

Not
http://en.wikipedia.org/wiki/Naked_short_selling
which might be a bad idea.

I will leave for the expert on this to comment further. Tubal.

Is this an available concept in CSE..?
If so how can we get into it..?

kiwi · 6 Re: Introduction of Short Selling Tue May 24, 2011 3:16 pm

kiwi

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Personally I think if short selling was permitted a lot of the manipulations that are currently going on will stop dead in its tracks. In the US its possible to short sell up to a certain percentage of a companies shares. In most cases this is around 10% of the issued shares. There are a number of shares that are trading at levels that bear absolutely no connection to what they are worth. When prices get out of kilter like this, then short sellers will step in and sell to the speculators. In the long run the share price has to adjust back to what the share is actually worth, at this point the short seller will buy back the shares and pocket the difference as profit.

tubal · 7 Re: Introduction of Short Selling Tue May 24, 2011 3:35 pm

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slstock wrote:

SanjivFund wrote:Hi guys let me know you thoughts of this..

Tubal will be elated on this. I will leave him to comment. Which form of short selling were you referigng to?

Indeed. We had a great discussion in this thread: http://forum.srilankaequity.com/t3206-going-short