Shorting Stock in the Cashflow 202 Game

In the Cashflow 202 Game, if you draw a Capital Gain Deal card that states that MYT4U is at $40 which is at the top of its range, you can then short sell it.

If you want to understand the concept of shorting stocks, read this:

Shorting Stocks

or watch my YouTube Video:

 Shorting Stocks and Shares in the Cashflow 202 Game

The procedure is that cash amounting to $40 times the number of shares that you sell is placed in the MYT4U envelope. This is the cash that has been placed on margin as it is not yours until you buy back the stock at a later date.

If you or somebody else picks up a Capital Gain Deal card allowing you to sell MYT4U at $20, then you collect half the cash in the envelope. This is because the price of the stock has also halved. However, if MYT4U goes bankrupt, then the share price drops to zero and you collect ALL the cash in the envelope.

Remember that the rule in Cashflow 202 is that you must buy the stock at the next available time whether you want to or not! So, there may be the case where the price of MYT4U goes up to $50 (outside it's normal trading range). If this happens, you get none of the money in the envelope and have to pay the bank an additional amount to cover your loss.

Remember that the amount of cash you get from the envelope is equal to the difference between the selling price and the price at which you bought the stock back, times the number of shares.