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To: Kid Shelleen

Can you short-sell stocks that you actually own?


3 posted on 01/28/2021 2:06:27 PM PST by E. Pluribus Unum (You are in far greater danger from authoritarian government than you are from a seasonal virus.)
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To: E. Pluribus Unum

No, unless on another account.
Although it makes zero practical sense.


4 posted on 01/28/2021 2:08:21 PM PST by NorseViking
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To: E. Pluribus Unum

That’s called short against the box. Completely legitimate and should be the only lawful short sale.


6 posted on 01/28/2021 2:12:08 PM PST by Gahanna Bob
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To: E. Pluribus Unum

There was a time when short selling what you owned was allowed as a tax strategy. “A short sell against the box is the act of short selling securities that you already own, but without closing out the existing long position. This results in a neutral position where all gains in a stock are equal to the losses and net to zero. The purpose is to avoid realizing capital gains from a sale to close, and so it has been restricted by regulators in practice.”


12 posted on 01/28/2021 2:32:04 PM PST by Mouton (The enemy of the people is the media.)
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To: E. Pluribus Unum

No... a short sell by definition is borrowing a share from the brokerage (who takes it from another account or holds a certain amount in a central account) and selling it at the current market price. Then when you close you have to buy a share to give back to the brokerage.

If you own the share you can sell it out right expecting it to drop and then buy back in - same idea, just a different method.


16 posted on 01/28/2021 2:47:55 PM PST by reed13k (For evil to triumph it is only necessary that good men do nothing)
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To: E. Pluribus Unum; reed13k; NorseViking; Gahanna Bob; Mouton
Can you short-sell stocks that you actually own?

I believe you can structure a Covered Call that acts like a put.
https://en.wikipedia.org/wiki/Covered_call

32 posted on 01/28/2021 7:08:11 PM PST by IncPen ("Inside of every progressive is a Totalitarian screaming to get out" ~ David Horowitz)
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