Stock Shorts

[bobby]

So with all the recent fb ipo and other crap.

Where does the money for the shorts come from?

Your essentially earning based on the bet that it goes down?

But who is footing that bill? Is the company paying it? Is the market paying it? Is some government bureaucratic mess paying it? Underwriters/Banks?
:question4:

 

[mx=headroom]

Investopdia bro, then if you still don't understand come back and ask questions.

 

[jellyfish]

When you short a stock your selling someone else's (usually the investment bank's) share. With the agreement that you will buy the share back for them at the end of the trade.

 

[mattseh]