Learn about Short Selling with iMinds Money's insightful fast
knowledge series. Short selling is the practice of selling borrowed
stock at a high price and then buying back the stock at a lower
price. A short seller expects to profit from the fall in a stock's
price. The more common investment practice is to "go long," that
is, to buy stock with the expectation of the price rising in the
future. Simply, a short transaction sells high and buys low, while
a long transaction buys low and sells high.A basic example is as
follows. An investor believes that Company A stock is overpriced at
$60 per share. The investor then borrows 100 shares and sells them
for $6000. The price of Company A's shares then fall to $20. The
investor buys 100 shares at $20 for $2000. The investor then
returns the shares that have been borrowed and makes a $4000
profit. iMinds will hone your financial knowledge with its
insightful series looking at topics related to Money, Investment
and Finance.. whether an amateur or specialist in the field, iMinds
targeted fast knowledge series will whet your mental appetite and
broaden your mind.iMinds unique fast-learning modules as seen in
the Financial Times, Wired, Vogue, Robb Report, Sky News, LA Times,
Mashable and many others.. the future of general knowledge
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