2. Definition of short sale :
Short selling is the sale of a security that is
not owned by the seller, or that the seller
has borrowed. Short selling is motivated by
the belief that a security's price will decline,
enabling it to be bought back at a lower
price to make a profit
3.
4. Short selling involves a three-step process:
Borrow shares of the security, typically from a
broker.
Sell the shares immediately at the market price.
Repurchase the shares (hopefully at a lower
price) and return them to whoever you borrowed
them from. After all this, you will pocket the
difference if the share price has fallen, but will have
lost money if the price went up
5. Conclusion :
Short selling is a way for investors to
benefit from a decline in a stock's price.
The market always needs people on
both the long end (owners/buyers) and
the short end (renters/sellers) for it to
work properly
