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Trading Terms

Short Interest

Short selling refers to the practice of borrowing shares from a broker and selling them in the hopes of buying them back at a lower price in the future. This is done with the expectation that the price of the shares will decrease, resulting in a profit for the investor. However, if the price of the shares increases, the investor may incur a loss. Short selling is a commonly used strategy in the stock market, but it carries a high level of risk and requires extensive knowledge and analysis. This practice can also lead to market volatility and has been the subject of controversy in the financial world.
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