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What is shorting stocks?

Updated: 9/17/2023
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14y ago

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'Shorting' is selling stocks you don't have in the hope that the prices will fall.

When the buyer demands delivery of the stock you can then buy those stocks in the open market for less than you already sold them for, making a profit in the process.

If the prices do not fall, you have to buy them anyway and will lose money on the transaction.

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14y ago
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