Shorting stock | Stocks and bonds | Finance & Capital Markets | Khan Academy

What does it mean to short a stock? Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/shorting-stock/v/shorting-stock-2?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/shorting-stock/v/basic-shorting?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Can you sell something that you borrowed from someone else? Why, yes, you can and it is called "shorting". Why would you do this? Well, you can now make money if the price goes down. Is this bad? This tutorial has your answers. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy

Comments

1. how does shorting a stock compare to buying or selling a put option?
2. How do you know everything
3. dont you make 45 because of dividend you had to pay
4. man, you are total mess. you better dont explain
5. Thank you for the explanation. It clicked for me once it was noted as an asset vs. a liability.
6. Why didn't you mention about the interest that the person has to pay to the broker for borrowing the share? Actually he must be left with less than $50.
7. finally a video where someone actually explains what the Title of the video says it will....Thanks a ton! hopefully a ton of Mulah lol
8. I'll bet the dislikes are from IBM stockholders.
9. This is a great explanation of the process. Thank you
10. So if you short a stock, and a dividend gets issued, as you are currently holding the stock would you receive the dividend payment. This would essentially mean that when you pay back the person you borrowed the stock from, you don't actually lose any money, you just give them the dividend payment you received from their stock right?
11. This a good explanation of short selling.
12. so short selling is just selling before the stock/bond goes down in hopes of avoiding losing money?
13. Sketchy moves no wonder 2008 happened
14. The wash sale rule would apply in this case correct?
15. 24 holders of IBM stock didn't like this video :)
16. He forgot about about the $5 he paid to the owner of the stock. He really made $45 in this example.
17. 240p?????? IS this 2016???
18. It is cool!
19. i understand the short selling but can anyone tell me how can i short stocks using a online brokers like Merrill edge. I have seen the theory part everywhere but no one actually demonstrated the real world example. is there any link to any real world example, of how to do short selling trade in real world.
20. Best explanation on the web. Love during the video when a question popped in my head and you foreseen people asking that question ans answered it LOL!