What happens if you short sell a stock like BP? Would you lose a lot of money because the stock is likely?
An Anonymous User asked:
not to go back up?
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stock is likely? what does that mean?
When you sell a stock short you are betting on price going down. Price has already been beaten down badly and overdue for a bounce. You are late to the game; downside price movement is limited. Price movement to the upside is unlimited and so are your losses if you are short.
Here is a good reference for finance terms and definitions
http://www.investopedia.com/terms/s/shortselling.asp
http://www.investopedia.com/terms/s/short.asp
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