Short Selling Stocks - A Quick Guide
Basically, short selling of stocks refers the selling of a stock not necessarily owned by the seller. To be more specific, it is the short sale of a security that the seller does not own but promises to deliver anyway. When you short sell a stock, you must have a broker who lends it to you. The stock may come from the brokerage firm’s own inventory, from another brokerage firm, or from one of your brokerage firm’s customers.