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A market transaction in which an investor sells borrowed securities in anticipation of a price decline.
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In other words you make money if the stock goes down in price. Short selling is an excellent way to make money, but remember a couple things:
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Most brokers require you to short sell a minimum of 100 shares of a stock typically over $4 or $5.
- In the long run stocks tend to rise.
And with a bull market it's even more difficult to make money.
- Only short sell stocks with a large float
to avoid the short squeeze.
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