Difference between revisions of "Short selling"

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(Created page with "Short selling is a term used in the investment world when an trader borrows shares of stock for a short time in order to sell them and make a profit. The way she makes a profi...")
 
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Latest revision as of 00:46, 7 June 2019

Short selling is a term used in the investment world when an trader borrows shares of stock for a short time in order to sell them and make a profit. The way she makes a profit is that she borrows shares she believes will soon go down in value, sells them at the current market value, and then waits until the value declines before purchasing and returning them. When the loan term is up, she must pay back the value of the shares and any interest occurred.