Tag: DJIA
-
Short Selling vs Casino Gambling
Q: When a proposal for short selling is presented, a frequent objection is that profit potential is limited in that the shares can only go down to zero but losses are potentially infinite since there is no limit, in theory, to how high the stock price can go. How do you answer such an objection?…
-
Stock Market Speculation with Inverse ETF’s
An inverse exchange-traded fund is an exchange-traded fund (ETF), traded on a public stock market, which is designed to perform as the inverse of whatever index or benchmark it is designed to track. These funds work by using short selling, trading derivatives such as futures contracts, and other leveraged investment techniques. By providing, over short…