The fundamental question you always need to ask as an investor is, “Will this company be worth more in 10 years?” – Phil Town
This week, Phil and Danielle continue their discussion of Tesla. They jump into the definition of short selling a stock and why people are shorting Tesla right now.
Phil explains what a short sell is and when someone might think about shorting a stock. Phil talks about why it’s very difficult to be a short seller because, not only do you have to be right about the stock, but you have to be right and get the timing perfectly. He also explains why CEOs of companies don’t really care for short-sellers.
Phil also explains why stocks can “gap up” overnight in what is called a “short squeeze”.
What to learn more about short selling? Join us on the podcast today!
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