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> Shorting a stock is like renting a car for a year only if stock goes down. Stocks moves up too, in that case the analogy doesnt work.
by mkagenius 8y ago
> Shorting a stock is like renting a car for a year
only if stock goes down. Stocks moves up too, in that case the analogy doesnt work.
- stephengillie 8y agoThe analogy still works - you would just extend the car rental. And yes, sometimes short sellers do lose money on this transaction.
- mkagenius 8y agoI always thought that the price of a car always go down.
- stephengillie 8y agoNot always, but you're right it's uncommon for cars to appreciate in value. And yes it does stretch the analogy pretty thin.