What is short selling?
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“Short selling” is a controversial subject amongst investors, because it involves taking a negative view on a company and seeking to profit from a fall in the company’s share price. Naturally, this can be upsetting for those who have the opposite view and have invested in the company. In this article I set out:
- What is meant by selling short and how it is done
- When there are problems with short selling
- Risks involved in short selling
- Why it can be worth paying attention to those who are short