Is it wrong to profit off of corporate corruption?

[Vesayen]

Granted I lambast enron CONSTANTLY but it has made me some money, along with some other shady companies.

HOW do I make money off them?

The SECOND I hear about some possible corruption I comb for some varifiable sources about that corruption, then see how old the sources are. IF the information is just making its way into the main stream media, check the companies stock price, IF it hasent fallen much yet, but is JUST starting, BUY BUY BUY!!!!!!!!

Well not buy, short sell(if you dont know what short selling is, basically you make money if the stock goes down).

Here is my next cash cow:

http://www.apolyton.com/forums/showthread.php?s=&threadid=97642&perpage=30&pagenumber=1

Anyone else ever done this? It seems easier to predict when a comany's stock will plumit then when it will increase.

[SlowwHand]

I hope you go bankrupt.

[Vesayen]

I never put more then 100 dollars into these things, but I made over 600 on martha stewart, and got a 481% return on Enron(I only invested $20, should of invested more lol-if I had invested my life savings I would of been set for life, but that of course would be too risky-Enron was the first time I did it).

[SlowwHand]

Gamble! Come on! Roll those bones!

[Az]

You're a smart kid, Vesayen. I hope you burn in hell. j/k

I was thinking about investing in the stock market, myself. I am planning to do a ~100USD experiment.

[Vesayen]

Smartest thing I EVER did Azrael, look for the first signs of scandal and short sell before the media does its classic 24/7 coverage(till it finds a new story)-KA CHING!!!

[Q Classic]

hey, vesayen, you should really buy into SCO.

like at least $500k worth. i hear they're going to make a fortune soon.

[alva]

Not being an economics major, but how does one make money selling if it goes down?

[DAVOUT]

You sell first at 100, then you buy later at 50.

The problem arises if the stock goes up and you are obliged to buy at 150 !

[chequita guevara]

Derivatives, an incredibly impossible to understand niche of investing.

[Q Classic]

SCO's gonna be a good investment. Bay Investment, Microsoft, and Sun just signed contracts with it, so it'll be a shining star.

[Vesayen]

Originally posted by alva
Not being an economics major, but how does one make money selling if it goes down?

It's complicated to explain, I cant even try to-someone else do it

[Bosh]

You buy the rights to sell a stock at a given price over a given amount of time. If the stock goes down then you make money buy buying the stock for a low price and then selling it at the higher price you paid for the rights to sell it for.

[chequita guevara]

I've never been able to wrap my brain around how it works. It just doesn't seem to make sense to me.

[Urban Ranger]

Re: Is it wrong to profit off of corporate corruption?

Originally posted by Vesayen
Anyone else ever done this? It seems easier to predict when a comany's stock will plumit then when it will increase.

Shorting works great if you can figure it out accurately.