RE: Anybody know what price Helikon to their short out at ?4 Sep 2024 14:06
Snork
Do you actually know what shorting a stock means ? Let me explain. If someone shorts a stock they borrow say 1 Million shares from a broker at say £1.00p a share. They then sell the shares straight away at £1.00p. Then if the shares fall to say 50p, they then Buy them back at 50p & pocket the 50p per share profit.
If they have to buy the 1 million shares back at 50p per share, where do you get , as you stated it would crash the share price ? It would do the exact opposite & make the share price rise.
Also the opposite is true, if they borrowed 1 million shares at £1 a share & sold, then the share price rose to £1.50p a share they would lose 50p on each share.