5 things you need to know about … short selling

1. What is short selling and why is it controversial? Short selling is the practice of betting that a listed company's share price will drop. This is typically effected by the person who is placing the bet (usually a hedge fund) borrowing shares which it then sells and subsequently buys back at a lower price in the future. The hedge fund will then return the shares that it borrowed to the lender and will pocket the difference between the price at which it sold and then bought the shares....
By: White & Case LLP

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