Short-selling

The practice of borrowing shares, then selling them, in the hope of buying them back at a lower price and making a profit. Short-sellers tend to be unpopular, on the grounds that they prosper from bad news, and the practice tends to be banned or restricted during crises, the very times when it is most profitable. But short-sellers can play a useful role in sniffing out scandals and acting as a check on overheated markets.