Why does that group of people of the stock markets smile and clap (on the news) !


Question: Why does that group of people of the stock markets smile and clap (on the news) whenever the stocks drop!?
On the news, you see that large group of people - clapping and smilieing - when the stocks have dropped!
Why are they so happy!?!? Shouldn't they be sad!?Www@Enter-QA@Com


Answers:
There is something called short-selling, where people actually make money when the price of the stock drops!. It's complicated, but in a nutshell, what they do is 'borrow' shares of stock to sell them and 'promise' that they will replace those shares at a later date!. So if they sell those 'borrowed' shares at $10 per share and then the price goes down to $8 per share than they make $2 per share!. Basically short-sellers are betting against the market!.Www@Enter-QA@Com

maybe they're short sellers!. short sellers make money if the stock goes down in price!.Www@Enter-QA@Com



The answer content post by the user, if contains the copyright content please contact us, we will immediately remove it.
Copyright © 2007 enter-qa.com -   Contact us

Entertainment Categories