So I'm learning more about investing and recently discovered shorting. As I understand it, you borrow shares from a broker, sell it now, buy them back after the stock drops for cheaper than you sold them, then return them back to the broker, keeping the difference from the two transactions.
My question is this: if I owned 100 shares of a company and think the stock will drop, and I sell them, wait for the stock to drop, then buy 100 shares back, is that not shorting? Wouldn't I still be profiting on the stock dropping in the same basic way as if I borrowed the shares from a broker?
Sidenote: how does the broker profit in this scenario?
Submitted January 22, 2017 at 01:14AM by swissarm http://ift.tt/2jaJQVq
