Short selling may be a recognizable term, but its inner workings remain a mystery to many would-be investors and neophyte market players. Yet, short selling is a fundamental aspect of the public markets. It acts as a control mechanism for inflated market caps, allowing investors to make money off of someone else’s bad business practices and unrealistic valuations.
As such, it has been both touted and cursed by retail investors and remains a contested topic between long traders and their day trading counterparts. Are daytraders chivalrous knights or predators playing on investor’s fear and greed?
So, what does it mean to short sell, what are the risks and what is the pay off? Are you a short seller? Tune in!