Imani wrote:
hedge funds borrow stocks when they think a company isn't doing well, promise they'll sell back to investors at a certain price, when it goes higher they sell for a profit, and then with goes low buy it back, and then they sell it to the investor they made the promise to. this is short selling. short covering is buying the stock back to return it to the investor. i guess if a lot of hedge funds did this for a lot of companies it can drop and rise quickly