Short Selling Stock Explained

What does it mean to short a stock?

To short a stock means to borrow shares of a stock from another investor and sell them, with the expectation that the price of the stock will decrease. The investor can then buy back the shares at a lower price, return them to the lender, and pocket the difference as profit. However, if the stock price increases, the investor will incur a loss. Short selling is considered a higher-risk investment strategy.

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