Shorting stocks is an advanced investment strategy where one profits from the decline in the price of a stock. It involves borrowing shares of a company, selling them, and then buying them back at a lower price to return to the lender. The profit is the difference between the sale price and the buyback price, minus any interest or fees.
Shorting stocks can be a lucrative strategy, but it also carries significant risk. If the stock price rises instead of falling, the short seller will lose money. Therefore, it is important to carefully research and understand the risks involved before shorting any stocks.
