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To: pierrem15

I think a short sale is a sale of borrowed stock which you must some day return to the owner. It is not like a put or call which are options and can be allowed to expire. You have to cover a short at some time in the future, at least theoretically. In the meantime there is a charge for borrowing the stock.

In the case of a short, your losses are theoretically unlimited since you are on the hook for any increase in price of the stock after you sell it and before you cover.


9 posted on 05/08/2010 8:59:59 PM PDT by northman99
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To: northman99
The exposure is why I said 'in some ways.'

I just think a lot of people seem upset about the 'naked' shorts when the bigger issue is whether Goldman abused it's insider knowledge.

17 posted on 05/08/2010 10:21:40 PM PDT by pierrem15 (Claudius: "Let all the poisons that lurk in the mud hatch out.")
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