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 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