Selling Short

Selling Short Sale of Shares, which he doesn’t possess, by a speculator. He usually borrows the shares from his stockbrokers, promising to replace them at a future date, hoping that the price will fall by then. If the price falls, he buys the shares at the lower rate, and makes a profit on the difference. If the price has risen on the other hand, he has to buy the shares at the higher price, and sustains a loss

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