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Short Selling…a fine art to fast profits in falling markets

Short selling, or shorting, is the practice of selling securities one does not own. The settlement obligations for the short sale are met by borrowing the shares. The shares are lent under the express condition that they would be returned to the lender at a specified date and adequate margins are collected to safeguard the interest of the lender. The mechanism under which the shares are borrowed and lent is known as...

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