Editing Talk:2094: Short Selling
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::It makes sense from what I remember from economics in high school: you buy stocks in advance for significantly above asking price hoping they gain more value before the deal happens, so let's say 1 share of company X is worth 20$ right now. Now I can offer you a contract that I'll buy this share from you for 50$, but on the condition that the deal happens in a week. If the value of the company stays the same, I make a loss; but if the value rises within that week and one share is suddenly worth, let's say 2000$, I make an immense profit. (divide each value I gave by ten and you have the bean/witch/child analogy from the comic) It's basically gambling on the hope that the value of stock rises. --[[Special:Contributions/172.68.50.118|172.68.50.118]] 17:24, 4 January 2019 (UTC) | ::It makes sense from what I remember from economics in high school: you buy stocks in advance for significantly above asking price hoping they gain more value before the deal happens, so let's say 1 share of company X is worth 20$ right now. Now I can offer you a contract that I'll buy this share from you for 50$, but on the condition that the deal happens in a week. If the value of the company stays the same, I make a loss; but if the value rises within that week and one share is suddenly worth, let's say 2000$, I make an immense profit. (divide each value I gave by ten and you have the bean/witch/child analogy from the comic) It's basically gambling on the hope that the value of stock rises. --[[Special:Contributions/172.68.50.118|172.68.50.118]] 17:24, 4 January 2019 (UTC) | ||
:::How are stock markets even still legal? This is insane! [[User:Fabian42|Fabian42]] ([[User talk:Fabian42|talk]]) 17:42, 4 January 2019 (UTC) | :::How are stock markets even still legal? This is insane! [[User:Fabian42|Fabian42]] ([[User talk:Fabian42|talk]]) 17:42, 4 January 2019 (UTC) | ||
− | ::::what would be insane would be trying to outlaw stock markets. They’ve been around for hundreds of years; business people are going to find ways to trade. | + | ::::what would be insane would be trying to outlaw stock markets. They’ve been around for hundreds of years; business people are going to find ways to trade. |
::::If you think short-selling shouldn't be legal, you should look into {{w|Quantitative easing}} and {{w|Fractional-reserve banking}}. -- [[User:Hkmaly|Hkmaly]] ([[User talk:Hkmaly|talk]]) 18:16, 5 January 2019 (UTC) | ::::If you think short-selling shouldn't be legal, you should look into {{w|Quantitative easing}} and {{w|Fractional-reserve banking}}. -- [[User:Hkmaly|Hkmaly]] ([[User talk:Hkmaly|talk]]) 18:16, 5 January 2019 (UTC) | ||
:::What you (and Ponytail, FWIW, given how muddled the analogy is of course) describe sounds more like selling put options than short selling. [[User:Stannius|Stannius]] ([[User talk:Stannius|talk]]) 19:10, 4 January 2019 (UTC) | :::What you (and Ponytail, FWIW, given how muddled the analogy is of course) describe sounds more like selling put options than short selling. [[User:Stannius|Stannius]] ([[User talk:Stannius|talk]]) 19:10, 4 January 2019 (UTC) |