Why would I sell short on stocks?

Question

Why would I sell short on stocks?

Answer 1

If the stock is gonne drop than you would do it. You should do it to bank stocks right now.

Answer 2

short means sell first, buy later. so you short if you think the stock price would go down.

Answer 3

If you think the price of the stock is going to drop, you will do what's called "selling short" or "shorting the stock." This means that you are selling stock you don't have -- you sell 50 shares of the stock at, say $100 per share, and then later you buy the stock to give to the person at, say, $90 per share. So you just made $10 per share of profit. For 50 shares, you just made $500 - not bad!

Answer 4

If you think the stock is going to go down, you would sell it short.  It the stock does go down, you can buy at a lower price to cover your sale.  Of course, if it goes up, then you are in trouble.