In my previous post, Did Osama bin Laden ever dream of doing this much damage to Americans?, I discussed a movie, The Big Short. But what is a “short”. How do you make money out of a “short”?
Suppose you know for certain the price of some financial asset, say the stock of HiTech Corporation (HiTech) is about to shoot up. Perhaps you’ve heard there’s going to be a takeover bid or maybe they’re about to announce the invention of a super battery that will make electric cars a no brainer.