General

Going Short

Selling a borrowed security with the expectation that its price will decline, allowing it to be repurchased at a lower price for a profit. Short selling involves borrowing shares from a broker, selling them on the open market, and later buying them back to return. The risk is theoretically unlimited because a stock can rise indefinitely, which is why short squeezes -- like GameStop in 2021 -- can be so devastating to short sellers.

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