What happens when you short a stock and it goes to zero
What Does it Mean to Short a Stock? When an investor goes long on a stock, she buys it with the belief that it is going to increase in value over time. A lot can happen. What if you short-sell Best Answer: This is the ultimate goal of a short seller. Remember, when you short a stock you really don't have a position. You are borrowing shares that belong to someone else and then selling them. If the stock goes to zero, you keep the proceeds from the sale and then you return the worthless piece of paper. It says you miscalculated, at least in the short term — a message that gets louder as the stock drops 25% to 37-1/2. To get back even, now you need a 33% gain, which is much tougher to come by