LOADING
The practice of selling borrowed shares with the expectation of buying them back at a lower price.
Short sellers profit when a stock's price declines. The process involves borrowing shares from a broker, selling them at the current price, then buying them back later at a (hopefully) lower price. Risks are theoretically unlimited since a stock can rise indefinitely. Short interest (the percentage of shares sold short) is a useful sentiment indicator. High short interest can lead to a short squeeze, where rising prices force short sellers to buy back shares at a loss, further driving up the price. The GameStop (GME) episode of January 2021 was a dramatic example of a short squeeze.