SFinance glossary

Short Selling

Quick definition

Selling borrowed assets to profit from a price fall.

Overview

Short selling is an investment strategy in which an investor sells borrowed assets, hoping to buy them back later at a lower price.

Common uses

  • Speculative strategies
  • Downside protection
  • Arbitrage

Examples of use in small businesses

  • Portfolio management
  • Hedging risk
  • Advanced investment strategies
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