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I recently read an article about TESLA stock where it said that the short sellers have made attempts to force down the price of the stock. How is it possible for them to force down the price of a stock?
Short selling is where you sell stock that you don’t have (and then buy it back later, before you have to actually hand over the stock).
People do this when they expect the price will fall (because you sell at todays price and then buy later at a lower price, and make a profit).
If many people do this, then the fact that lots of people are selling, in itself pushes down the price.
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