Short Selling is the sale of a security that is not owned by the seller, or that the
seller has borrowed. Short selling is motivated by the belief that a
security's price will decline, enabling it to be bought back at a lower
price to make a profit. Short selling may be prompted by speculation, or
by the desire to hedge the downside risk of a long position in the same
security or a related one. Since the risk of loss on a short sale is
theoretically infinite, short selling should only be used by experienced
traders who are familiar with its risks.
Dec 21st, 2014
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