short selling

Short selling is an investment strategy where an investor borrows shares of a stock and sells them on the market, hoping to buy them back later at a lower price. The goal is to profit from a decline in the stock's value. If the price drops, the investor can repurchase the shares at the lower price, return them to the lender, and keep the difference. However, if the stock price rises, the investor may face significant losses, as there is no limit to how high a stock can go. This makes short selling a high-risk strategy.