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Tip of the Day Don't try to Pick Stocks

Don't try to Pick Stocks - Some of us when we have extra money think that we can invest it in the stock market and earn some returns on...

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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 Trade Association

Trade Association - Trade associations, are organizations creating interaction opportunities to benefit all (win-win – see defined elsewhere) Member contributions fund the professional and trade association entity. It is used for public profile and image improvement, (company, industry, profession). Trade associations engage in lobbying and legislative matters actively . Information...

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