Covering

What does short selling or covering a stock mean?
Q. I heard from my professor that stocks can be bought, sold, sold short and covered. But what exactly does selling short and covering mean. How would I apply selling short and covering when it comes to buying stocks? Why does the seller need to borrow the stock from someone else's account? If he's the seller it's his stock right? I get the buying it back at a lower price part, but why does the seller have to buy the stock back if it goes to a higher price and make a loss?
Asked by nashjohn30 - Thu Sep 6 02:36:28 2007 - - 3 Answers - 0 Comments

A. In short selling, the seller does NOT own the stock he is selling. That's why he borrows it. For example, Microsoft (MSFT) is currently selling at $28.50 per share and I don't own it. But I think it's going to go down in price so I decide to short sell it. On my trading platform I just choose 'sell short' rather than 'buy,' specify the number of shares I want to sell and hit the execute button. Behind the scenes, my brokerage allocates the shares for my short sale from their own holdings, or from the account of one of their customers (they don't know about it, and they are at no risk because of the short sale). Those shares are sold on the open market to someone who was looking to buy MSFT. Let's say the stock does drop over the next few… [cont.]
Answered by Todd - Sun Sep 9 10:54:25 2007

What are the legal requiments covering the way you relate to and interact with children?
Q. What are the legal requiments covering the way you relate to and interact with children? I need to know for my corse work. Pleeease help me :(
Asked by *Crazy.Chick* - Sun Sep 21 14:57:03 2008 - - 2 Answers - 0 Comments

A. First off this sounds really werid, I guess you might need to explain more.
Answered by ~nikki~lynn~ - Sun Sep 21 15:00:27 2008

What to put in my covering letter with CV?
Q. I am planning to send a CV to various companies to ask if they will consider me for any jobs that they may have ether at present or in the future. But I am unsure how to do my covering letter explaining that and whether to include anything else.
Asked by Nessie - Thu Jan 29 04:32:09 2009 - - 3 Answers - 0 Comments

A. Dear Sir or Madam My name is...and I have recently seen your position of ...(quote any ref numbers here also), as advertised on/in (mention website or newspaper here) and the date you saw the advert. I feel that I have the qualifications, experience and accreditation you are seeking for this role. Please find enclosed my C.V submitted for your perusal. I look forward to hearing from you in the near future. Thank You Yours faithfully ... it really doesnt need to be much. In fact, dont make it too long because chances are, the manager doesnt have time to read a whole bunch of letters.
Answered by Gemma G - Thu Jan 29 04:41:43 2009