Short selling: Five crucial steps for success : vimarsana.co

Short selling: Five crucial steps for success


7/8/2021 12:23:03 PM GMT
Often, the media would have no kind words to describe short sellers whom they often brand as villains of the financial markets. Some present them as evil traders who would willingly drive down the stock prices of good corporations just to earn money from it. However, a deeper analysis of these activities could typically bring them to light as heroes of the trade.
For one, they help identify over-valued companies and bring their prices to a more accurate level. Short sellers also provide the liquidity that the market needs to function well.
What is short selling?
In concept, short selling is offering a buyer something that you do not own and in stocks, it could be something that you don’t even have on hand with you at the time of sale.

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