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

You borrow a share of Stupidfad dot com for a month. You sell it for $100. Two weeks later the price falls to $50 and you buy one. At the end of the month you give that share to the lender and you’ve made $50. That’s how you make money short selling.

It’s far easier to lose money short selling because you can misjudge whether a stock will go up or down.

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