From what I understand, shorting a stock is when you are allowed to sell a stock at current price for a period of time, regardless of the stock's value at the time of sale.
So, hypothetically, someone could short a stock that's worth $15 and sell it for that price in 2 weeks. The stock is now worth $11, but they get the $15 because of the put.
If that's all accurate, what's the difference between shorting the stock at $15 and selling in 2 weeks and just selling it today at $15? In the end of either situation you still have $15.
My question is, what is the purpose of shorting for a future date if you could sell the stock now at the same price?
If any of my information is wrong let me know. I may not fully understand it.
Submitted April 13, 2017 at 04:32PM by jerdub1993 http://ift.tt/2oEHBg1
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