What is short selling? Yahoo U explains

For more business and finance explainers, check out our Yahoo U page.

Buying a stock is often a bet that the stock’s price will go up. But what if you want to bet on a stock price going down?

Short selling is one way to do that, and involves a few extra steps than simply buying a stock.

It also comes with high risk.

How does one short sell a stock?

First, an investor borrows a share of a company, usually from a broker (likely in a margin account).

The investor then sells the share in the…


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