Trading Short Selling
Shorting is a way to capitalize on a likely decline in a stock, an industry, or even an entire market sector.
Investors borrow a share and sell it, with the hopes of buying it back later at a lower price. It’s also a strategy that’s been making headlines in recent months.
In short selling, a position is opened by borrowing shares of a stock or other asset that the investor believes will decrease in value.
It is usually conducted over a smaller time horizon and is thus more likely to be an activity conducted for speculation.
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