If you’re new to high finance, then the concept of “shorting” is bizarre and convoluted. People actually make money from stocks falling? How is this possible? Why is it legal? Does this contribute anything to society? Am I missing out? Here’s how shorting works.
Let’s say you have a neighbor who is a cat lady that collects Beanie Babies. She has one prized beanie called Roary the Lion, worth $5000 (according to the intellectual darkweb, where these things are traded). (more…)