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, 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