Considered by many to be a much more accurate picture of the market in general. Sales charge A transaction fee or commission paid for an investment instrument. The reverse of the usual stock market technique, short selling is based on the anticipation that a particular security price will go down. The practice of short selling involves borrowing shares of a security from your broker and immediately selling them at the current price. Then, as the price of that security declines, you buy back an equal number of shares on the open market and use them to cover the shares you borrowed from your broker, and make a profit.
Short sellers lose when the price of the stock ascends rather than descends.
Theoretically, there is more risk involved with short selling because a stock price could continue to rise forever. Share A unit representing a measure of ownership in a corporation. An organization that provides its members with the place and resources to buy and sell stocks. An increase in the number of outstanding shares in a corporation. This is usually brought about by the division of existing shares.