Why Is Short Selling Legal? – CNBC – 02/23/21

Why Is Short Selling Legal?

When a stock rises, all of its investors turn a profit, right? That’s not the case for short-sellers, who look for profit by betting against the success of a company or the market. The recent events surrounding Tesla, Reddit, Robinhood and Gamestop’s short squeeze have put short selling under the limelight. So how did the practice of betting against the U.S. market become such a common, legal practice? Watch the video to find out.

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