– 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

It means you are expecting the stock to go down so you “borrow” the stock and promise to sell it at a later date. If the price goes up then you owe money, if it goes down then you make the difference.