4 words, unlimited losses, limited gains. The lowest a stock can go is zero, which limits your gains on a short. Your losses are unlimited (note, your broker will give you a margin call and force you to close position in real life) losses if a stock keeps rising
For those of you wondering
Be interesting to see if this means banks will reduce assets or raise more capital. Could this mean spin-offs of banks?
Check this out: ‘Value Investing like Benjamin Graham’ – http://www.stumbleupon.com/su/1VqKhk/:QTd2Fvp2:5RZV16f9