30. Hedge Funds 2: What is Short-Selling? Video

Short-selling is often spoken about, particularly in the context of hedge funds - this brief video explains what this is.

GREAT? !! You and ...
GREAT? !! You and those like you make youtube great. thanks for sharing

Ever heard of ...
Ever heard of survivorship bias? I was told this doesnt take into account failed? companies from the S & P and DoW index funds etc.. making the index funds look better for both the marketablity of these investment funds and makes the funds managers look good. In other words only the best companies are factored into past performance and not the failed companies. Does that sound about accurate or have you not heard of survivorship bias?

I just? found this ...
I just? found this video searching YouTube, great videos!

HA! that was ...
HA! that was awesome. I Subscribed!? :)

It can be their ...
It can be their ignorance of course, but it is also very often a difference in views, timeframes or for? a hedge. Neither the short-seller or the buyer is guaranteed to be right and the short-seller of course loses money if the stock rises. A lot of short-selling is related to hedging other long (bought) security positions. Hope that adds to subject, Michael.

selling something ...
selling something that? is not even owned. that is confusing at first, but then again, so is buying something with a credit card. i suppose the person who borrows then short sells relies on the ignorance of someone else for profit.

Thanks? alot. !!!!
Thanks? alot. !!!!

Most liquid stocks ...
Most liquid stocks can be borrowed for a long time (for the short-seller to keep short position) - borrow fees just have to? be paid for the time that the security is borrowed. Sometimes investor goes long one stock and short something else as hedge and hedge is kept in place for a very long time. When there is a shortage of stocks available to borrow then the stock might be 'recalled' and the short-sale might not be able to be kept but this is exception - I hope that helps.

@crck4488 Why is ...
@crck4488 Why is this a bad thing?? How is betting on someone winning any better than betting on someone losing?

Why is this a bad ...
Why is this a bad thing? I? don't see how this is any worse than buying low in hope that you can sell high. Also what is usually the maturity for borrowing these securities i.e. when do you have to pay back the borrower?

this sounds ...
this sounds complicated when its not. i buy low, sell high, buy low again. whats so complicated about this? this isn't rocket science. lol i'm retarded and i can make easy profits from this simple method i just stated. the lines go up, the lines go down, the lines go up, the lines go down. this is not complicated to me. my motto: buy stocks that just crashed like when ford and gm crashed. lol. people are so stupid. who's had all the contracts for over a 100yrs. for? making cars for company?

I hadn't found ...
I hadn't found anybody to explain this to? me, until now. Thank you!!

thank you for ...
thank you for spending? your time explaining all thismumbo jumbo. good work :)

f**king sneaky I ...
f**king sneaky I love it.? no wonder we are in such a mess WOW! this hedge funds rule the world including the Federal Reserve

THANK YOU FOR THIS ...
THANK YOU FOR THIS You should be TEACHER?

The one who lends ( ...
The one who lends (lender) it out receives amount equal dividend? from the short-seller. The lender might not even be aware that this particular stock has been lent. The short-seller does not receive the dividend as not long the stock and in fact has to pay an amount equal to the dividend (part cost of being short). The new buyer of the shares (who bought them from the short-seller) is the holder of record and receives the dividend directly from the company. Hope that helps, Michael.

pertaining ...
pertaining dividends and short selling. when one shorts a company and the time comes around when a company distributes the dividends back to the shareholders, who retains the value of the dividends, the one who shorts the stock or the one who lends it out? thank you?

Thanks, this? was ...
Thanks, this? was helpful.

Short-selling is ...
Short-selling is not illegal in the US, Canada, UK, Germany etc. and many other Western countries. Sometimes during periods of? crisis there might be a ban on short-selling certain types of securities or instruments (like the ban on short-selling financial stocks in the US in fall of 2008). Hope this helps and lots more info on web and in book on this - Michael.

I thought short- ...
I thought short-selling is illegal???? But I must say that I am VERY NEW to all this. I'm just quoting what I've been reading and researching. Is there a reason I'm thinkin this or is it just? bc I'm new and do not fully understand?????

I thought? short- ...
I thought? short-sellin was illegal????? But I am also VERY NEW to all this so I'm just quoting what I've been reading up on and researching.

thx for the info ...
thx for the info but i looking to investment 3,000 dollar what would be? the return if the dow down to 9000 on a short sell from let say from 11000 if the market go up how much will i lose

To buy or sell an ...
To buy or sell an index large institutions sometimes trade all of the stocks in the index (which is obv. a lot of trades and to? do it effectively larger sums work better). To make this easier for hedge funds, retail investors and even large institutions, exchange traded funds are often used - for the Dow, one ETF is the 'DIA' - which one can buy or sell. Best regards, Michael.

great video how ...
great video how would i short the dow i believe it? will down to 9000 this year

for those who say ...
for those who say money cant? buy happiness, they wrong. it does.

So what is it that ...
So what is it that you expect me to do? I am already going what makes me happy. I have real estate that I rent out and make enough to live off of without having to work. But ofcourse I still work to keep busy, and keep my mind body and soul in balance. I can't think of any other way to be happy. I dont need to play the casino game of the short selling scheme. I mean how much money is enough for you? I think there is no limit. Does? that lead to true happiness. Can you take $ to your grave?

No I simply have no ...
No I simply have no will to exploit my fellow humans. I have? a conscious. I believe in the laws of Karma. You should try and follow them. I believe in speaking the truth only and not concocting ways to take advantage of people. You may call yourself smart but some day this will come to bite you in the buttocks.

Thats your excuse!! ...
Thats your excuse!! If you can'tdo? something you make a lame excude and label it as something bad and wrong!

Better to be an ...
Better to be an happy honest fool than a worthless stool. I live an honest, stress free, guilt free productive life. I wouldn't want it any other way. Keep speculating and manipulating the market if Money is your main goal in life. But be aware, you will never become content with this mind set. You can never have? enough money if that is your main goal in life. You seem like the heartless type that runs a sweatshop for little kids. Exploitation for profits is your game. Happy life to you!