Short-selling?

How can we borrow stocks used for short selling?

Stocks of other clients are "held in street name" so they can be used for this purpose.
Therefore you are able borrow them(the owner will never know) for the transaction that you are betting the stock will lower price.

It is then at that lower price that you will gain profit because you can sell YOUR newly begotten shares at the original price, only you now have them at a better price than the ones you borrowed.

Easy way to think of it is you borrow stock because you can't sell naked(without the stock) while you wait for your shares of that same stock which will be in your possession after it has fallen in price(here you cover with your own cheaper shares); so you can sell them at your anticipated lower cost, but for the original price as the borrowed shares.

Great I've made my profit - time to give back the shares I borrowed to make this all happen.

No shares then you can't play unless you borrow some.

It is just as easy as buying stock.

Your broker should let you short any stock you want. All you have to do is sell it.

If your broker doesn't let you short call them up and ask why.

Your broker does all the "work".

Open a MARGIN account. (You need at least $2,000.00 USD)

To start you need a margin account. The requirements for a margin account may vary between brokers.

Select the stock you want to short. Click "sell short" or similar button on your screen. If your broker has the stock available for loan, the transaction will be processed. If not, you should get a message informing you that no shares are available.

When you want to close the short, be sure that you "buy to cover."