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Financial Terms / S - T / Short Selling

Short Selling

Short selling or “going short” on a stock means borrowing shares of the stock from the open market and selling them immediately. If the stock price goes down, you can repurchase the shares at the lower price and keep the difference as your profit. 

However, if the opposite happens and the share price increases, you will have to pay the increased share price when you repurchase and absorb the losses.

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