RE: Temporarily distracted...23 Aug 2025 09:36
Well that's Redknight gone for a while only Slug and DBW to go, and that's the three Stooges gone.
Good morning Subby.
How shorting works.
Let's say you want to short 1 million shares in Solgold.
You borrow 1 million shares from a broker.
Now at this point you sell the shares.
But you need to give the broker back the shares.
The short is for a time period.
If the share falls in price from say 7 pence to 5 pence.
Then your bet has been successful, as you can buy the million shares back cheaply and return them to the broker, and pay the interest on the shares and of course there is a fee to pay for borrowing the shares.
However if the shares go up say from 7 pence to 14 pence.
Then by the end of the period that the short is set at.
You again must buy the shares which are now more expensive and return them to the broker and pay the interest and fees on the original loan of the shares.
So to answer your question more fully.
When the short comes to an end on Solgold, not only will the person who took out the short be out of pocket.
But buying the shares on the open market will increase volume and won't do the Solgold price any harm.
This is why this short on Solgold is insignificant.
People who seriously short shares in a company usually short 5% or more of the total stock.
So when you hear people on here saying that the share price is being manipulated, they really don't know what they are talking about, and everything else they say should be equally disregarded.
Perhaps the biggest fraud on here is Redknight, as this poster is ridiculous.