1. Short selling is when you borrow a stock, sell it, and buy it back later.
2. In short selling, your potential gains are unlimited because stock prices can drop infinitely.
3. A short squeeze occurs when a stock's price rises sharply, forcing short sellers to buy shares to cover their losses.
4. The maximum gain from short selling is when the stock price goes to zero.
5. In a short sale, your potential loss is capped because stock prices can't go above a certain limit.
6. Short selling is often used by traders who expect a stock price to decline.
7. Short sellers profit when the stock price rises.
8. Short selling increases liquidity in the stock market.
9. A short seller must eventually buy back the borrowed stock to close the position.
10. Short selling is riskier than buying stocks because the potential loss is theoretically unlimited.