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Shorting Stock 2

More on the mechanics of shorting stock.

  1. lvecsey
    March 3rd, 2009 at 22:42 | #1

    That made more sense this time when you showed the borrowed IBM share as populating both the asset and liability columns, thank you.

  2. masakmerah
    March 3rd, 2009 at 23:21 | #2

    You need a Stop-Loss! Not only it prevents you from losing ALL your money on one trade……it also keeps your losses small.

  3. vickiormindyb
    March 4th, 2009 at 04:14 | #3

    On the CNN video I watched, the guy said you’re an Economist.
    I thought you worked in Computer Science, b/c you said you wrote computer programs.

    I usually don’t like CNN, but I enjoy it when you’re on it.

  4. spikesmth
    March 4th, 2009 at 08:41 | #4

    So this is somewhat like a Bond? A debt security on the brokerage firm? Only the debt is based on the bet that IBM will fail, and the brokerage firm will pay out with no/low risk? I can see how this could devastate our financial system… Zeitgeist style… *goosebumps*

  5. 4rcane
    March 4th, 2009 at 08:49 | #5

    so could you explain the term long a bit
    Long is just a standard BUY of a share correct? You don’t actually borrow from broker or anything.

  6. Kratzbyrste
    March 4th, 2009 at 15:45 | #6

    Didn’t the Volkswagen shares explode recently because of short sellers? Can you elaborate?

  7. aw3212
    March 4th, 2009 at 23:13 | #7

    yeah and in the meantime the broker is making money on ALL the transactions.

  8. Dirty420South
    March 10th, 2009 at 05:20 | #8

    No short selling, no short covering. No short covering, no bids. No bids = Crash

  9. prrolg
    March 12th, 2009 at 23:26 | #9

    Talk about the damn naked shorts now that you’ve covered the widgit factory professor. That’s Rodney Dangerfield back to school reality and market manipulation.

  10. denismos
    March 15th, 2009 at 15:31 | #10

    now youtube makes sense, finally! :)

  11. BarrackObamah
    June 8th, 2009 at 15:55 | #11

    i recommend u KISYFS

    KEEP IT SIMPLE YOU FUCKIN STUPID!

  12. ImaYam
    July 2nd, 2010 at 18:52 | #12

    HOly shit.  You are an AMAZING teacher.

  13. theporksicle
    October 27th, 2010 at 01:36 | #13

    @masakmerah
    Yeah but the risk with a stop loss is that you could lose small when you could have won big. Taking Sal’s example, let’s say you put a stop loss once the share price reached $110, so your loss ceiling is $10 per share, but it could have gone to $110 and then dropped down to $50 as predicted, you lost $10 and the opportunity cost of not holding the position was $50.

  14. vickiormindyb
    April 30th, 2011 at 15:41 | #14

    My friend, who’s a broker now, started his career in financial services working for IBM. IDK what he did there other than meet his ex-wife. I don’t like when he talks about HER, but I’m willing to listen to a little of it.
    I don’t think he was a broker at IBM. He told me he became a broker when he started working for NYSE.

  15. Acekingshi
    June 30th, 2011 at 01:27 | #15

    can you do me a favor…can you post more videos…I think your a great teacher man

  16. Abdullah19910
    July 5th, 2011 at 01:45 | #16

    how do you know so much about unrelated topics!!! physics chem bio econ etc

  17. Beastorio
    July 25th, 2011 at 21:24 | #17

    how long is the time period of the borrowed stock? How long do you have until you have to buy the stock that you borrowed?

  18. smurfieboo
    September 29th, 2011 at 09:12 | #18

    How does he sell the share, through the same or another one or by trading online? In both videos it’s not clear.

  19. smurfieboo
    September 29th, 2011 at 09:13 | #19

    How does he sell the share, through the same broker or does he trade online? This is not clear in both the videos.

  20. spirituelconnexion
    November 4th, 2011 at 17:33 | #20

    Thanks God I knew about Khanacademy. Thank you Sal :)

  21. dlaskew2
    November 30th, 2011 at 07:37 | #21

    Timeline is AMAZING, Why am getting introduce to you after COLLEGE… Errr

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