Shorting is an investment strategy employed by investors who expect the price of a security to decline in the near future. It involves borrowing shares of a security and selling them in the market with the intention of buying them back at a lower price to repay the borrowed shares. If the price does indeed drop, the short seller can profit from the price difference. Shorting allows investors to potentially benefit from downward price movements and is often used for hedging or speculative purposes.
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