Glossary
From A to Z all the terms you need to skip the jargon and get started!
Short selling
Short selling is an investment strategy where you borrow shares of a stock, sell them, and hope to buy them back later at a lower price to make a profit. 💰
Essentially, you're betting that the stock price will decline.
For example, if you short sell 100 shares of "Overpriced Tech Co." at $40 per share and the stock price drops to $30, you'd buy back the shares at the lower price, making a profit of $1,000 (100 shares x $10 price difference). 🎉
Fun fact: Short selling can be risky, as the potential losses are theoretically unlimited since a stock's price can rise indefinitely. However, it can also help savvy investors profit from market downturns or overvalued stocks!