Why short selling is good for the capital markets
Published Date: 6/2/2021
Source: phys.org
Short selling often gets a bad rap because it is a type of trade that bets against the success of a firm. In essence, short selling allows investors to borrow stock from a broker to sell into the market with the hope of buying the stock back at a cheaper price, thus, profiting on the difference between the sell and buy prices. Because of this practice, short selling is sometimes seen as a controversial tactic.