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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OK I read like 3 articles and I *think* I finally understand what short selling is.  Someone thinks a stock is going to go down, so they borrow shares at a certain price (say, $10) and pay a fee for doing so.  Then when the price goes down to say $5, they buy a bunch of shares on the open market at the lower price to pay back the ones they borrowed.  Is that right? So they sell the borrowed ones for 10 and buy replacements at 5, and make $5 per share (minus the borrowing fee).

if so, what is "naked" shorting?  Something about not having a timeline on the borrowing?  I need someone to ELI5 all of this haha.  [/quote]

Naked means not owning the underlying shares. [/quote]

PP here - so that means they're on the hook for the shares they already short sold, and have to get them wherever they can - like buying on the open market at a high price?  And in this case I guess there aren't that many shares out there in the first place.

Now I need to figure out what calls and options are.  If anyone knows of a good 101-level resource (other than Wikipedia) I'd love it!  [/quote]

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