– What does it mean to short a company?

Question

I assume this is related to stocks and investing, but what does it mean short a stock? Like I’ve seen people asking if it’s time to short Netflix.

In: 0

Answer 1

Normal shorting is a legitimate way to try and make money. It gets a bad rap because a) it’s highly risk and can cost you a huge loss, so only do it if you understand it and can afford to lose a lot, and b) it can be rigged illegally to basically steal value from businesses or other investors, and the authorities are terrible at clamping down on rigged “naked” short selling and and are routinely letting rule-breakers get away with cheating.