How The Stock Market Works
Sadly, something happened to put a stop to their fun. The powerful, rich men wanted to get more than their fair share of the pie. In reality, the stock market is organized so that these people had the upper hand. They wanted to use this knowledge to make everyone else poorer while their money bags grew fatter. They did this with a technique known as “shorting a stock” or “short-selling.”
How The Stock Market Works
When You Short Stocks
Allow us to explain it to you if the concept is not familiar. When you short a stock, you are basically counting on the thought that its price will drop. You then borrow these shares at the current price and hope that it gets devalued shortly. By then, you can buy to cover or return the borrowed stocks and then pocket the price difference.
When You Short Stocks