Buy To Cover
"Buying to cover" means you actually sold shares of stock before you bought them, hoping that the price they are selling at is higher than what you can buy it for later. A rather risky business, it involves borrowing shares from a broker, and then the investor buying them back at a later date. When you purchase an equal number of shares as those you borrowed, that “covers” the short sale and allows the shares to be returned to the original lender, who is usually the investor's own broker/dealer.
Hopefully you know what you're doing so you can make a profit on the transaction, or you will owe money to the broker. Kids, don't try this at home.
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Finance: What are Limit Order, Sell Limi...7 Views
Finance a la shmoop what is a limit order? you want to sell a thousand shares
of Colonel electric it was demoted after they cut their dividend the shares have [Scissors cuts dividend in half]
been trading wildly between $15 and $25 a share you don't want to feel like a
moron for having sold them at fifteen bucks when six weeks later they kissed
25 with tongue so what do you do well you put in a limit order that is you put
a limit of a minimum price of 25 bucks a share for Colonel Electric such that [Pile of stocks appear]
those shares will simply sit in your account unsold maybe forever until
somebody out in the wild blue yonder of Stockland is willing to pay twenty five [Woman standing at a colonel electric stand]
dollars or more for the shares where you have a minimum price limit of 25 bucks a
share in your order so here's to hoping they sell and don't get further demoted [Man carries stock into car]
Sargent Electric is just a place you don't want to go
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