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Wednesday, October 8, 2008

Short selling finally explained

Short selling is like borrowing a pound of tea while the price is say, $5 per pound and selling it at that price. Then when the price drops to $3, you pay the current price to the person you "borrowed" it from, netting $2.


Thank you deja pseu.

And here I will add the football 'offside rule', explained:

You're in a shoe shop, second in the queue for the till. Behind the shop assistant on the till is a pair of shoes which you have seen and which you must have.

The 'opposing' female shopper in front of you has seen them also and is eyeing them with desire.

Both of you have forgotten your purses.

It would be totally rude to push in front of the first woman if you had no money to pay for the shoes.

The shop assistant remains at the till waiting.

Your friend is trying on another pair of shoes at the back of the shop and sees your dilemma.

She prepares to throw her purse to you.

If she does so, you can catch the purse, then walk round the other shopper and buy the shoes.

At a pinch she could throw the purse ahead of the other shopper and, *whilst it is in flight* you could nip around the other shopper,
catch the purse and buy the shoes.

Always remembering that until the purse had *actually been thrown* it would be plain wrong to be forward of the other shopper.

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