1. Selling Short n Objective n Know the 5 steps of selling short. n Be able to identify the steps in the video clip. n Understand the risk of selling short.

2. Bull Market vs. Bear Markets n How do you make money in a bull market? n How do you make money in a bear market?

3. Selling Short n 1) Borrow the stock from a broker. n 2) Sell the stock at a high price. n 3) Wait for the bear market. n 4) Buy back the stock at a low price. n 5) Return the stock.

4. Video Clip n What are the characters doing in the video? n What are the flaws with the clip?

5. Buying on the Margin n What is buying on the margin? n What is a margin call? n What are the benefits and dangers of buying on the margin? n What has the SEC done about margins?

6. Buying on the Margin n Your broker lends you money to buy the stock. n As long as the price goes up, you win. n If it goes down, the broker may call in the margin. (1929 Stock Market Crash)