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You can often hear "I took shorts" or "I scored longs"


06 / March / 20 Bunsi Shakiramal Visitors: 59 Rating: ★★★★★

You can often hear "I took shorts" or "I scored longs"

Any trader knows the terms “long” and “short”.

Long is a long position, when a trader buys an asset in the hope that the price will rise and that he will sell it by selling the purchased asset at a new price.

Short is a short position, when a trader sells assets in the hope that the price will fall and buying an asset at a new price to fulfill his obligation, he will earn on the price difference.

 

It should be noted that not every sale of assets means that you took a short position, but only the sale of those assets that you do not have. For example, if you sold 1000 shares of some company that you had, then you are not a shorter. But if you did this without holding these shares, you honestly took a short position.

I think there are people here who know everything about it. For them, one wonderful story.

The history of financial markets knows a lot of legendary figures. In the nineteenth-century United States, among them were Vanderbilt, Gould, Fisk, and Dru, who conducted many operations in the markets. True, most of them were very doubtful in terms of morality and the criminal code, but nonetheless.

In the second half of the nineteenth century, the largest railway companies in the USA were. Their shares were very popular. Obviously, they attracted the main attention and the guys from Wall Street.

The stocks of almost all railway companies at various times were victims of various manipulations, but Erle ralds, who fell victim to the two largest attacks, was especially unlucky.

The main characters were Messrs. Gould and Fisk. Their partner was Dru. He provided the company with a million dollars in 1859 and became a member of the board of directors. By 1869, it had accumulated funds of 16 million and became a tidbit.

 

Vanderbilt decided to establish control over the company and began to buy up its shares. Dru and his partners sold stocks, including shortly. Vanderbilt bought all the shares, another 50 thousand, which were sold shortly. Using his position in the company, Drew issued another 100,000 shares, which Vanderbilt also bought. His possibilities were exhausted, and the three with money took refuge in the neighboring state.

 

The situation was stalemate. This forced the rivals to negotiate. The three left for themselves seven million received from the sale of shares, and Vanderbilt's box office.

Soon partners started a new scam. They withdrew 14 million in cash from banks and began to sell short the shares of the same unfortunate company. The situation in the country with loans has escalated to the limit. The rate on loans reached 160 percent. It is understood that stock prices began to fall. Drew left the game, but when he saw that prices continued to fall, he decided to return and began to sell the shares on his own shortly. Gould and Fisk found out about this and they didn’t like it much. They turned to buying and old Drew was caught in a corner. He completely went bankrupt.

 

On the grave of this famous stock exchange player, the words he once said: “A person selling something that does not have, must buy it back.”

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