Short Selling a Stock Lets You Bet Against a Company, But It Comes with Major Risks


short selling

When you invest money in a stock, you want the value of that stock to increase. Once it does and you decide to sell that stock, you’ve made money (or a gain).

Yet not all stocks make gains on the market. Many stocks lose value over time due to lack of demand, poor business decisions, and other factors that impact performance. If you have faith in that stock’s future, you can invest in it with the hopes that it increases in value at a later date. If you don’t have faith in that stock, you can bet against it, or “short” it.

Unlike traditional investing (or “going long”), short selling lets investors make gains when a stock decreases. While the idea of making money through smart predictions of a stock’s poor performance sounds enticing, it’s not without risks. In fact, short selling is one of the riskiest investments you can make on the stock market.

Wall Street Survivor put together this helpful video to show how short selling works. Sure, you might find yourself enticed by the thought of betting against a company (like $SNAP, for instance). Yet once you learn the major financial risks, chances are you’ll want to stick to regular ol’ investing.

When you invest in a stock the traditional way (by “going long”), you risk losing your original investment. When you short a stock, you risk losing much more. If the stock your shorting increases instead of decreases, then you’re on the hook for the gains.

Shorting stocks is only for more advanced investors and traders. If you want a lower risk and safer way to grow your money, you’ll want to avoid short selling. Otherwise, you could end up losing more than you started with.


297 Comments

  1. Pingback: viagra price cvs
  2. Pingback: essay help college
  3. Pingback: cialis pills
  4. Pingback: pharmacy online
  5. Pingback: cialis daily
  6. Pingback: viagra substitute
  7. Pingback: viagra walgreens
  8. Pingback: pfizer viagra
  9. Pingback: canadapharmacy
  10. Pingback: Erythromycin
  11. Pingback: viagra
  12. Pingback: viagra overdose
  13. Pingback: sidnefil vs cialis
  14. Pingback: viagra shits
  15. Pingback: cialis daily dose
  16. Pingback: prices on cialis
  17. Pingback: cephalexin generic
  18. Pingback: sipnurqj
  19. Pingback: cialis
  20. Pingback: viagra
  21. Pingback: write my essay
  22. Pingback: help with my essay
  23. Pingback: ventolin 200
  24. Pingback: clomid in males
  25. Pingback: diflucan walmart
  26. Pingback: synthroid for
  27. Pingback: cheap essay writer
  28. Pingback: drug neurontin
  29. Pingback: medical pharmacies
  30. Pingback: Eriacta
  31. Pingback: canada pharmacy
  32. Pingback: Homepage
  33. Pingback: acheter cialis
  34. Pingback: cialis price
  35. Pingback: owner of tinder
  36. Pingback: buy ativan paypal
  37. Pingback: london dating free
  38. Pingback: Hydrea
  39. Pingback: cialis bathtub
  40. Pingback: tadalafil cost
  41. Pingback: viagra dosing
  42. Pingback: buy sildenafil 20
  43. Pingback: cialis coupon 2019
  44. Pingback: 200 mg sildenafil
  45. Pingback: cialis tablets
  46. Pingback: sildenafil 20
  47. Pingback: what is tadalafil
  48. Pingback: generic viagra
  49. Pingback: norvasc dosage
  50. Pingback: cytotmeds.com
  51. Pingback: cymbalta 2017
  52. Pingback: duloxetine 60mg
  53. Pingback: buspar for anxiety
  54. Pingback: citalopram 10 mg
  55. Pingback: zanaflex capsules
  56. Pingback: generic wellbutrin
  57. Pingback: diclofenac
  58. Pingback: metronidazole gel
  59. Pingback: tadalafil 5mg cost
  60. Pingback: cipla priligy
  61. Pingback: zithromax 250
  62. Pingback: what is cefdinir
  63. Pingback: clindamycin hcl
  64. Pingback: zithromax generic
  65. Pingback: cialis pills 20mg
  66. Pingback: buy levitra online
  67. Pingback: amazon viagra
  68. Pingback: cost cialis 5mg
  69. Pingback: blue pill viagra
  70. Pingback: sildenafil recall
  71. Pingback: sildenafil 200mg
  72. Pingback: viagra buy
  73. Pingback: herb viagra
  74. Pingback: amlodipine 5mg
  75. Pingback: cost cialis
  76. Pingback: levitra dosage
  77. Pingback: cialis cheaper
  78. Pingback: priligy dapoxetine
  79. Pingback: valtrex dosage
  80. Pingback: cialis 20mg europe
  81. Pingback: what cialis does
  82. Pingback: ciprofloxacin
  83. Pingback: tadalafil
  84. Pingback: better than viagra
  85. Pingback: regcialist.com
  86. Pingback: lipitor lawsuit
  87. Pingback: cost of ivermectin
  88. Pingback: 1
  89. Pingback: zithramax 2g
  90. Pingback: plaquenil for pain

Comments are closed.