as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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explain the concept of short selling.
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short selling is an investment strategy that involves selling a financial instrument, such as stocks, bonds, or options, that the investor does not currently own, but has borrowed from another investor. the intention is to buy the security back at a lower price, giving the investor a profit. the potential for profit is higher with short selling than with buying and holding, since the investor can make a profit from a decrease in price of the security.
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