Of course, most of us don’t even know the meaning of hedge funds, unless you’ve seen The Wolf of Wall Street or The Big Short. However, many individuals have suddenly developed an interest in the stock market. So, here are 10 facts about the whole recent battle over the stock market.
1. What is Shorting?
Shorting is a strategy for investment or trading that speculates on the fall in the price of a stock. Simply put, in the next couple of months, you are betting on certain stock prices to fall.
In short selling, a position is opened up by borrowing shares of a stock or other asset that the investor believes will decrease in value by the expiry date of a certain future date.