Shorting is not for all investors. It is for risk taking investors who believe that the current price of a stock is overvalued. To make money, these investors borrow the stock from a brokerage house, and sell it to another buyer. If the stock price dips, the investor who shorted keeps profits from the difference in prices, less whatever is owed to the brokerage house (this is also called trading on margin). This is an aggressive investment strategy, popularly known as margin call, in which you can lose a lot of money because you need to replace the margin money quickly.
What does shorting a stock mean?
Shorting is for the investors who understand the overvalued stock concept.
