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How can I learn more about short selling?

Investors with margin accounts have the option of short selling a security if they believe it will drop in price. An investor selling short borrows the security from a broker to sell in to the market with the agreement that it must be bought back at a later date (preferably at a lower price) and returned to the broker. There is "an uptick rule" from the US SEC mandating that short sales can only be made in a rising market to protect those who are "long" in the stock. Unlike most investments, your potential for loss is unlimited unless you place a stop buy order to protect yourself. If the security increases dramatically in price, you must repurchase it at the market price in order to return it to the broker. Short selling is a highly speculative and risky form of investing.

Selected Bookmarks: The Art of Short Selling.
Author: Kathryn F, Staley
New York: John Wiley & Sons, 1997 How to Invest in Canadian Securities.
Author: Canadian Securities Institute
Toronto, Ontario: Canadian Securities Institute, 2000 Shortboy.com Education on short selling is provided as well as suggestions for shorting the market. Previous short selling recommendations are listed to provide information on their success rate.
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