Is it wrong to profit off of corporate corruption?

[Urban Ranger]

Originally posted by Boshko
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.

I think that's warrant.

Shorting is basically selling stocks you don't have, "borrowing" them from a friendly broker. If the company goes into a tailspin, you can buy them back at a much lower price. You make the difference in price.

[Urban Ranger]

Originally posted by Q Cubed
hey, vesayen, you should really buy into SCO.

Hey, that's a good idea, since the whole SCO fiasco is a pump-and-dump scheme.

So short the damn thing. It will die soon.

[alva]

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

/me sits down next to che....

[chequita guevara]

I have a book by an internet comrade/friend of mine, Doug Henwood, Wall Street. He devotes a whole chapter to derivatives, and I've never gotten past that chapter. Guess it's time to try again.

[Urban Ranger]

Is that the book about how brokers screw people over on derivatives?

[Az]

I actually understand it very well. thank you, RRT2.

[chequita guevara]

Originally posted by Urban Ranger
Is that the book about how brokers screw people over on derivatives?

It's just about how the whole invetment scheme works, from a Marxist viewpoint.

Left Business Observer