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What is short selling?

Written By Sheffin on Tuesday, September 1, 2009 | 8:17 PM


Short selling is a legitimate trading strategy. It is a sale of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers take the risk that they will be able to buy the stock at a more favourable price than the price at which they "sold short."

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