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Stock Shorting: CNBC Explains

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Published: Friday, 3 Jun 2011 | 10:42 AM ET
By: CNBC Explains
Basic Stock Shorting: CNBC Explains
Pessimistic about the future of a company's stock and not sure what to do about it? One strategy employed by many investors is stock shorting. Salman Khan of the Khan Academy explains the basics.

Pessimistic about the future of a company’s stock and not sure what to do about it? One strategy employed by many investors is stock shorting, a tool that allows them to make money when a stock goes down. However, this strategy can be very risky. Salman Khan of the Khan Academy explains the basics.

From this video, you’ll understand:

  • How stock shorting works
  • The risks associated with shorting a stock
  • Payoffs or losses involved with shorting




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Pessimistic about the future of a company’s stock and not sure what to do about it? One strategy employed by many investors is stock shorting, a tool that allows them to make money when a stock goes down.

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