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

The thing that made it easier for me to understand short-selling was this: when you borrow shares of stock from some entity, you don’t owe them dollars…you owe them shares. Doesn’t matter if the price of the shares has gone up or down in the meantime. You borrowed shares; you owe shares.

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