Short Selling: Inside the World’s Most Controversial Investment Strategy
Short selling is one of the most sophisticated strategies in modern finance. Unlike traditional investing, where profits are generated from rising asset prices, short selling allows investors to potentially benefit when securities decline in value. The process involves borrowing shares, selling them in the market, and later repurchasing them at a lower price to return to the lender. While the concept appears straightforward, the underlying ecosystem includes securities lending, margin requirements, risk management, market psychology, regulatory oversight, and institutional trading strategies.