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Some time ago, the Philippine Stock Exchange (PSE) announced that they will introduce “short selling” by October 2018. The ability to do short transactions has been available abroad long ago, but in the Philippines, not a lot of people know what it is.
So what is short selling or shorting anyway? While most experienced or veteran investors know that this is how you profit from a declining stock price, not a lot of beginners know how it works so we’ll discuss the basics of short selling here.