what is shot selling
Answers were Sorted based on User's Feedback
Answer / sai prasad
short selling is nothing but selling a stock without
actually possessing it. ex:- u know a stock of a cement
company which is trading at Rs.100 and u know that
infrastructure projects are not doing well and the worst
will be expected in next month.. so consequently cement
demand will come down.. now u will sell that cement company
stock at current price i.e, 100 without actually having the
documents in ur hand and u will say the buying party that u
will give the document in 45 days,, so in the next 45 days ,
as u expected, if price comes down by Rs.70 of the cement
company share,u will buy the share at Rs.70 and give that
orginal documents.. therefore ur thread is Rs.30...u gain
out there and viceversa..
Is This Answer Correct ? | 12 Yes | 3 No |
Answer / vandana gupta
The selling of a security that the seller does not own, or
any sale that is completed by the delivery of a security
borrowed by the seller. Short sellers assume that they will
be able to buy the stock at a lower amount than the price
at which they sold short.
Is This Answer Correct ? | 6 Yes | 0 No |
Answer / kaustubh khorwal
short selling is purly trading activity.
In this activity you sell shares at higher price
which is not in your demate A/c. i.e. Selling shares
is not your holding position. And want to buy in
lower price to square up your position.
Is This Answer Correct ? | 4 Yes | 0 No |
Answer / prabhakar jadi
In stockmarket normally people buy shares and sell their
shares when they get good price so that they can get
profit. but in short selling first they sell shares without
having the shares. after that they will buy shares.this is
called short selling.(selling first and buying after in
market)people will do this when market goes in downtrend
sothat they sell at high price and after they buy at low
price if market getdown.
Is This Answer Correct ? | 3 Yes | 0 No |
Answer / guest
short selling means the silling of those shares that are in
excess and there demand will decraese in future.
Is This Answer Correct ? | 2 Yes | 1 No |
Answer / martinb
About "One Shot" Selling. That is a destock practice, as
when U got a large stock of one special Item, and get one
day to purge it out, no matter the price. You do then take
"one shot" ("one day") to deplete a full stock.
Is This Answer Correct ? | 0 Yes | 0 No |
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