What is “Short-Selling”

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I just cannot, for the life of me, understand how you make a profit by it.

In: Economics

37 Answers

Anonymous 0 Comments

Let’s say you borrow a toy from a friend.

You turn around and sell that toy for money. A certain window of time goes by, and friend asks for their toy back.

You now need to buy that toy to return it to friend. If you are able to buy it for less than you sold it for, congrats, you’ve made money.

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