Short selling is a way to bet against companies. Instead of buying low and selling high, short sellers sell borrowed buy teleflex shares first.
**How short selling works**
1. Loaned stock is sold on the market.
2. When prices drop, shares are repurchased.
3. There is no cap on potential losses.
**Examples**
– During the 2008 crisis, short sellers profited from financial stocks collapsing.
– Hedge funds lost billions.
– Yet rallied massively.
**Benefits of short selling**
– Balances portfolios.
– Forces transparency.
**Risks**
– Short squeezes are dangerous.
– High borrowing costs.
– Emotional stress and volatility.
**Conclusion**
Short selling is not suited for beginners. Used carefully, it offers hedging and profit opportunities, but misused, it leads to devastating losses.
