Net Advisor is misleading you by not telling you the full truth.
As the other poster said, selling is selling whether short or not.
There is a further fundamental you must understand to appreciate the true abomination of this dishonest practice. You must understand that short selling causes a duplicate to appear. Legal fine print notwithstanding, more duplicates = more shares = lower value per share = self fulfilling strategy. Naked shorts are pure counterfeit, legal shorts are merely dishonest duplicates (neither owner nor buyer is advised, neither would agree since they instinctively understand the negative effect). Please go to http://www.stopshortingstocks.com for a complete discussion. Speak out before our economy is ruined — or perhaps everybody should short the hell out of everything and leave town before the crash!
Massive buying causes prices to rise, and massive selling causes prices to drop. That’s what makes the market move. Short selling is selling. So, if enough people sell a stock short, the price will drop. But you as an individual trader probably won’t have any effect.
Eventually, all of the shares that have been shorted will have to be bought back. That could mean that one day the price of a massively-shorted stock will jump back up. But there’s no guarantee.
Net Advisor is misleading you by not telling you the full truth.
As the other poster said, selling is selling whether short or not.
There is a further fundamental you must understand to appreciate the true abomination of this dishonest practice. You must understand that short selling causes a duplicate to appear. Legal fine print notwithstanding, more duplicates = more shares = lower value per share = self fulfilling strategy. Naked shorts are pure counterfeit, legal shorts are merely dishonest duplicates (neither owner nor buyer is advised, neither would agree since they instinctively understand the negative effect). Please go to http://www.stopshortingstocks.com for a complete discussion. Speak out before our economy is ruined — or perhaps everybody should short the hell out of everything and leave town before the crash!
Short selling does NOT CAUSE a stock price to go down.
That would be a false statement.
Massive buying causes prices to rise, and massive selling causes prices to drop. That’s what makes the market move. Short selling is selling. So, if enough people sell a stock short, the price will drop. But you as an individual trader probably won’t have any effect.
Eventually, all of the shares that have been shorted will have to be bought back. That could mean that one day the price of a massively-shorted stock will jump back up. But there’s no guarantee.