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Introduction to Stocks and Short Selling

Learn more about stocks and shares, how they are valued, and how short selling of stocks works, with this free course.

Publisher: Khan Academy
Some companies issue stocks to raise money to grow and invest in their business. Stocks are, therefore, an investment. When you purchase a company's stock, you are purchasing a small piece of that company, usually called a share. You normally buy stocks with the hope that they increase in worth, but how can you profit if the stocks you bought decline in price? The answer is shorting. This course will teach you all about how shorting works.
Introduction to Stocks and Short Selling
  • Duration

    1.5-3 Hours
  • Students

  • Accreditation






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Stocks are also known as shares or equity and are a type of security that signifies proportionate ownership in the issuing corporation. This entitles the stockholder to that proportion of the corporation's assets and earnings. This course will discuss how you essentially become a partial or part owner of a company when you buy stock or shares from that company. You will also learn what makes them different to bonds, which do not make you part-owner of the company involved.

Shorting stock involves the sale of stock that a seller does not own, or shares that the seller has taken on loan from a broker. This course will discuss why short sellers take on these transactions. You will learn that they act on mere speculations that a stock's price is headed downward and that if they sell the stock, they'll be able to buy it back at a lower price at some point in the future. You will also learn the importance of selling high and buying low.

The stock market plays an important role in many countries economies, both from the point of view of nations' industries, investors, and governments. This means that people who have a strong understanding of the stock market are in high demand around the world. If you are interested in getting to know more about this incredible industry, check out this course today and start learning something that can make a real difference to your bank account!

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