I assume the stock is declining because people are shorting the stock, not that they bought stock originally and are selling it at a loss (not a great strategy).
Shorting doesn't require you to own the stock. When you think a prediction is too high, you short it (selling stock you do not own with the obligation to buy it back in the future).
As discussed previously, a lot of peopel think Killzone 2 is overvalued at 1.5 million predictions. The first one didn't sell very well at all.
Some stocks, like GTAIV (Xbox 360) just skyrocketed out of the gate. It depends on the IPO. If the IPO was too high, then people are going to short the stock down.
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Shorting doesn't require you to own the stock. When you think a prediction is too high, you short it (selling stock you do not own with the obligation to buy it back in the future).
As discussed previously, a lot of peopel think Killzone 2 is overvalued at 1.5 million predictions. The first one didn't sell very well at all.
Some stocks, like GTAIV (Xbox 360) just skyrocketed out of the gate. It depends on the IPO. If the IPO was too high, then people are going to short the stock down.