This post isn’t about the real estate variety of short selling (you know, the kind you’d expect me to talk about…). If you want to know what a short sale is in the real estate world check out my post, “What is a Short Sale anyway?“. Hey… that sounds familiar.
I’m talking about short selling stocks. And nope, I’m not an expert; but this is my blog and I’ll talk about it if I want to.
Economics and Finance 101
We’re all familiar with short selling’s better known sibling: “going long”. That’s to say, an investor buys a stock in Company A and hopes that, for a variety of reasons, that stock goes up thereby making a profit after selling the stock at the higher price.
In fact, the majority of all trading is done in this manner. And one of the reasons its called going long is because investors tend to hold on to their investments over long periods of time thus mitigating much of the risk of the stock going down and losing money on the investment.
Frankly its pretty boring stuff. Read More…