Brokerage for Short Selling

Brokerage for Short Selling is effectively – selling what you don’t own – to engage in short selling you need to find a person who owns shares and believes that the share is going to rise. In undertaking short selling, you do think that the price is going to fall. You are effectively “betting against” people who think its going to rise. Fred has made $2 and pays a premium to the stock broker, who would have in turn been charged a premium from the large investor.

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