STST

ST Stock Tip: Short Diebold.

When the market opens on April 30th short Diebold. Click to find out why.

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Shorting Explained by Daytrader.com

How can you profit from stocks that you believe will decline in price? Answer: shorting.

You short stocks by selling stocks that you do not own (at least not in the same account). That's right, shorting enables you to sell stock that you do not own and buy it back at a later time, ideally at a lower price. How can you sell a stock that you do not own? You borrow it...but as is the case with anything that you borrow, you are obligated to return it at a future date and you do this by buying it back (this is called covering your short) and returning it to it's original owner. If you are able to cover the short (buy the stock back) for less than it cost when you sold it, this difference in price becomes your profit!!