Some stock investors take added risks in the hope of greater returns.
Not all stock trades are straightforward buys or sells. There are several strategies you can use to increase your gains, though they also increase your risk of incurring losses. Among these strategies are selling short and buying warrants . Both are based on a calculated wager that a particular stock will change substantially in value in the near future. While most investors buy stocks they think will increase in value, some investors borrow and then sell stocks they don't own, because they expect those stocks to decline in value.