What is short selling and how does it benefit Hindenburg Research?
Short selling is a trading strategy where an investor borrows shares of a stock they expect to fall in price, sells the shares, and then buys them back at a lower price to make a profit.
Short selling, or shorting, is essentially betting that a company's stock will fall. It is considered a high risk investment strategy.
Unlike traditional trading in which the investor buys stock and hopes that its price will appreciate, short sellers make a profit when stock falls.
To short stock, traders borrow shares from a broker for an agreed period of time. Then they sell the stock and make money. When it is time to return the borrowed shares, the trader will buy shares on the market and repay them to the broker.
If the price of the shares is down, the traders make a profit.
Hindenburg engages in activist short selling, which involves selling borrowed stocks with the hope of buying the same at a lower price later. If the prices fall on the expected lines, the short sellers make a killing.
The investment research firm, which invests its own capital, takes such bets based on its research, which looks for "man-made disasters" such as accounting irregularities, mismanagement and undisclosed related-party transactions.
Ab in sabme kisko fayda hua aur kisko nuksaan? You all are educated enough to understand what big players are actually doing to manipulate markets!
Agar ek stock ek week mei 3600 se 1000 ka low maar sakta hai, and the same day it makes a high of 1800, Imagine how much time it needs to go back to the same price again?š¤£
Market ki psychology ko samjhoš