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How do you make money when share prices are falling?

switch76 · 2010-09-23 19:06:09

When there's a big fall in share prices like during the credit crunch or dot com bubble, is there still a way to make money? Or do you just sell all your shares and wait for things to improve?

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Biggles Posts: 8,209 Forumite

26 September 2010 at 8:29AM

sabretoothtigger wrote: »

That doesnt always happen

Obviously, share prices are affected by various different factors and, on a good day on the markets, the price could still rise on xd day.

The fact is, however, it would still rise 10p less than it would otherwise have done, as it is now worth 10p less to a potential buyer than the day before (as the seller remains entitled to the dividend).

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How do you make money when share prices are falling?

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