So I understand a short is essentially borrowing a stock, selling it, letting the price drop (You figute it will anyway), buying same stock at new lower price, returning to the lender, and keeping the difference.
What does the lender get out of this? Do they charge let a set fee to borrow from them?
And since your borrowing and it's a little different than owning It, is there some sort time limit you get before you have to return to the lender?
If someone could explain this to me in a simplified, non investor jargon (as little as possible anyway) way I would really appreciate it.
Submitted March 27, 2019 at 12:11AM by djc8433 https://ift.tt/2HQT99M
