Short-Selling

Short selling is a practice in which a seller (the short seller) sells securities which they do not actually own, but only lease at the time of the sale, to other stock market participants.

The short-seller’s goal is to profit from a decrease in stock market rates. In the best case, the short-seller buys back their stocks for a lower price at a later date. In this way they profit from the difference between the high price at which they sell the securities, and the lower price at which they buy them back.

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