Wednesday, August 15, 2012 12:45:13 PM
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Shorting a stock means to sell it first then buy it back after the market (or that stock in particular) goes down. Short sells are bearish on the market, believing that the market will be going down and that they can make money buy "shorting". Sell first, buy back later at a lower cost, hence buying low and sell higher but i reverse order. Shorting can considered somewhat more aggressive because you can lose a fair amount of money if the stock does not go down but insetad goes up. You then have to "cover your short" by buying at an even higher price.
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