Short Selling

May 9, 2024

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Short selling is an investment or trading strategy that speculates on the decline in a stock or other securities’ price. It involves borrowing shares of stock from a broker and selling them at current market prices, then later buying them back at a lower price. Short sellers profit from the difference if the price drops; however, they face potentially unlimited losses if the price rises instead. This strategy requires careful consideration due to its risks and complexity.

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About the author 

Jenna Lofton, an expert in stock trading, investing, and financial planning, combines over a decade of experience with rigorous academic training. Holding dual MBAs in Finance and Business Administration from the University of Maryland, Jenna's expertise is grounded in a deep understanding of the financial markets. Her career, which started on Wall Street, has evolved into empowering others through her insights and analyses in the dynamic world of finance.

Based in New York City, Jenna's approach is informed by her hands-on experience as a former financial advisor and her keen observation of market trends. She is known for translating complex financial concepts into actionable strategies, making her a valuable resource for both seasoned investors and newcomers to the stock market. Her commitment to financial literacy and her ability to demystify investment principles have made her a respected and authoritative voice in the investment community.

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