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Tip of the Day Buy A Used Car

Buy A Used Car - Next to a home, the most expensive purchase you are likely to make is a car. When looking to buy a car it is...

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Short Selling

Definition: Selling of a stock that a person doesn't own.  They hope to profit by buying the stock back at a lower price and returning it.  Also called "shorting."

TeenAnalyst Advice: Shorting a stock is basically the same as making a bet that the stock will go down.  The investor borrows the shares of stock, sells them immediately, and promises to return the same number of shares later (plus interest).  If the stock goes down, they buy the stock back at a lower price and return them.

For example, if you short 30 shares of XYZ stock at $30/share and the stock falls to $20/share, you would have made $300 in profit.

 

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Definition of the Day Hyperinflation

Definition: Hyperinflation is extremely rapid inflation.  During hyperinflation, the cost of goods rise at an extraordinary rate. TeenAnalyst Advice: Hyperinflation usually...

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