Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Dividend logo

In this era of low returns, the investment world’s best minds – of which there are so many due to the lure of big money – are figuring out how to crank out better results.

Since there is little to be made in picking the right investments to buy and hold, which is known as the long side of the investment equation, attention has been focused on the short side, or profiting from stocks and bonds that decline in value.

Making the Right Bet

Success in short investing means not owning securities, but rather betting correctly on which securities will go down in value, by how much and when. Traditionally, there are two ways to make such a bet.

One way is through selling the stock short. To do that, you borrow the stock from another market participant who owns it and then sell the shares. If the price of the stock goes down as planned, you buy the shares back at the lower price and return them to the original owner.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 412610572
News

The Market Wrap for January 19: Investors Pay No Attention to Possible Government Shutdown

Despite the possibility that the U.S. Federal Government is once again going to shut down on...

News

Trending: Ford Says Goodbye to Mass-Market Cars

Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with...

Dividend Investing Ideas Center

In Spite of the 90% Rule, Why Do Some REITs Have Poor Payout Ratios?

Real estate investment trusts (REITs) have grown in popularity since the financial crisis, so...