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The Daily Capital
INVESTING 201 · Lesson 61

Short selling, explained

Daily Desk · Editorial5 min read
Most investors bet a stock goes up. Short sellers bet it goes down — and take on a risk that, in theory, has no limit.

Normally you make money when a stock rises. But there's a way to profit when a stock falls — short selling. It's how some investors bet against companies, and it carries a risk most strategies don't.

Educational, not financial advice.