Skip to main content

How short selling works

2,682,585 Views

6,258 Questions Answered

Best of Web

Let’s Begin…

Short selling lets investors bet against a stock, profiting when it falls in price. But how exactly does a short work? And what are the risks? The Plain Bagel explains.

Additional Resources for you to Explore

How a bunch of Redditors made GameStop’s stock soar, much to the chagrin of the hedge funds attempting to short it.

Dig into one of the most famous market bubbles and crashes of all time: the Dutch tulip bulb bubble, known as Tulip Mania

How do companies and investors use the stock market? How does it work? Get to know the basics

With over 43,000 companies listed on stock exchanges around the world, how do investors decide which stocks to buy? Explore the tactics of different investing strategies

Next Section »

About TED-Ed Best of Web

TED-Ed Best of Web are exceptional, user-created lessons that are carefully selected by volunteer teachers and TED-Ed staff.

Meet The Creators

More from How Things Work