Shorting + ESG Investing

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5 Terms

1
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Short sell

Initial transaction

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Short cover

When the stock is bought back

3
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What is shorting a stock?

When stocks are borrowed from a brokerage firm, sold, then bought back at a lower price. A very high risk strategy because the losses are limitless.

4
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Short squeeze

When too many people are both buying and shorting a company, causing its stock prices to rise at an increasingly faster rate.

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ESG investing

Environmental Social Governance Investing, investing ethically in things you believe in.