A short sale occurs when you sell stock you do not own. Investors who sell short believe the price of the stock will fall. If the price drops, you can buy the stock at the lower price and make a profit. If the price of the stock rises and you buy it back later at the higher price, you will incur a loss.
Don’t Panic, Plan It!
Market changes are inevitable. Read our Director’s Take article to learn how you can plan for market volatility.
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