Why should an investor sell short?

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1156154

2026-04-15 20:10

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If an investor feels that an asset will decrease in value, he may "sell short", so that he is selling high and buying low.

However, if instead the asset goes up in value, he will suffer a loss, since he will buy the asset at a higher price than he sold it for,

Note that there may be fees for borrowing the assets, and there may be payment of dividends paid on the borrowed assets.

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