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Web30 Mar 2024 · A short seller borrows a stock, then sells it immediately on the open market and gets cash in return. After some time, the short seller buys the stock back using cash and returns it to the lender. If the stock declined in price in the meantime, the cash required to buy back the shares is less than the cash received from selling the shares. Web4 May 2024 · Key Takeaways. Short stock trades occur because sellers believe a stock's price is headed downward. 1. Shorting stock involves selling batches of stock to make a … dt O\u0027
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