Short Selling

Short selling is an investment strategy where an investor, known as a "short seller," borrows shares of a security (typically from a broker) and immediately sells them on the open market, hoping to repurchase them later at a lower price. The objective is to profit from an anticipated decline in the security's price. If the price does fall, the short seller buys back the shares at the lower price, returns them to the lender, and pockets the difference between the initial sale price and the buy-back price, minus any borrowing fees or commissions.