Profit in Shorting Stocks

How does a speculator make money by “shorting” Turbodyne, or another stock?

Short sellers borrow targeted stocks from brokers, and then sell them on the open market. A short seller who borrowed 1,000 shares of Turbodyne at $17 last August, and then sold the shares, is in a nice position--at today’s prices, he can buy them for $2 a share in the European stock market (Turbodyne is not traded in the U.S.), and then give them back to the broker he borrowed them from.

If the short seller sold his Turbodyne shares for $17,000 last August, and bought them back now for $2,000, there is a $15,000 profit, minus transaction costs.