If the price rises to £15, I can then sell my stock for a profit of £5 per share. If I believe the share price is going to rise, I’ll simply buy shares at £10. Let’s say StuffCo (a made-up company) has a share price of £10.
It’s a way of making money by betting that a company’s share price will fall. But a good place to start is by understanding what short-selling is – and how the Wall Street wizards who do it could end up being wrong-footed by a group of amateur traders.
