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ShareSoc
INVESTOR ACADEMY

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

Mark Bentley