Saturday School: The Basics of Shorting a Stock

Saturday School: The Basics of Shorting a Stock
Photo by ANDRANIK HAKOBYAN / Shutterstock.com

Most people buy a stock in hopes that it will rise in value and make them richer. But you can also make money on a stock that you believe will soon tumble.

When you “short” a stock, you’re gambling that the price will decline at some point in the future. Watch this video from the Khan Academy to learn the basics of shorting a stock — and what can happen if your guess about the stock’s future is wrong.

Have you ever shorted a stock? Share your experience by commenting below or on our Facebook page.

Popular Articles

Never Use a Debit Card to Buy These 9 Things
Never Use a Debit Card to Buy These 9 Things

Use your debit card for one of these expenses, and you could risk your bank account balance, your credit score or even identity fraud.

Why Your Cable TV Package Is More Expensive Than Ever
Why Your Cable TV Package Is More Expensive Than Ever

Due to this trend, Americans who still maintain pay-TV service are paying through the nose.

16 of the Most Outrageously Overpriced Products
16 of the Most Outrageously Overpriced Products

Retailers mark up products by hundreds of times their cost — but you don’t have to pay the premium.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Comments