I stand corrected. Perhaps then you can clarify how one can "sell short" if one doesn't initially own any of the product. Someone else has said that you borrow it. But if you then sell it you are selling something you don't own, so that is also surely illegal. And if not, it amounts to the same thing.
So it seems that when you don't initially own any of the product, the only way to "sell short" is to promise to buy it later which is still selling something you don't have.
Unless it really is a case of persuading someone to "lend" it to you, and then selling that, so you are selling something you don't own, and someone else is trusting that you'll return it.
So it seems that when you don't initially own any of the product, the only way to "sell short" is to promise to buy it later which is still selling something you don't have.
Unless it really is a case of persuading someone to "lend" it to you, and then selling that, so you are selling something you don't own, and someone else is trusting that you'll return it.
Is that right?