[citation][nom]senshu[/nom]Yeah, that'd be great if we already had shares of RIM to sell short.[/citation]
You borrow shares from your broker when you sell short, you do not sell your own shares. And, yes, you pay them interest for that privilege. The idea being, in a short time span the stock's price is going to fall, and you buy back, or cover, the shares you borrowed at a lower price.
You borrow shares from your broker when you sell short, you do not sell your own shares. And, yes, you pay them interest for that privilege. The idea being, in a short time span the stock's price is going to fall, and you buy back, or cover, the shares you borrowed at a lower price.