Selling is to expect the market to fall. First, sell a commodity futures or stock index, and then buy and close the position after the market falls to earn the difference. For example, if the current market price 10 yuan, you sell (that is, sell first), and after several trading days (or the same day), the price falls to 5 yuan, you can buy, or even close the position sold before, 10-5 = 5 and earn; If it rises to 15 yuan later, then 10- 15 =-5 is a loss to 5 yuan.

Because there is no short selling mechanism for stocks (you can only buy them first and then sell them, so there is no short selling concept)

1. Common stock:

1. Common stock refers to the shares that enjoy common rights in the company's operation and management, profit and property distribution, and represents the right to claim the company's profits and remaining property after meeting all the requirements for repayment of creditor's rights and the requirements of preferred shareholders. It constitutes the foundation of the company's capital, is a basic form of stock, and is also the largest and most important stock in circulation. At present, all the stocks traded in Shanghai and Shenzhen Stock Exchanges are common stocks.

2. Ordinary shareholders shall enjoy the following basic rights according to the proportion of shares they hold:

(1) Company's right to participate in decision-making. Ordinary shareholders have the right to attend shareholders' meetings, to propose, vote and vote, or to entrust others to exercise shareholders' rights on their behalf.

(2) Profit distribution right. Ordinary shareholders have the right to receive dividends from the company's profit distribution. The dividend of common stock is not fixed, which is determined by the profitability of the company and its distribution policy. Ordinary shareholders must receive fixed dividends from preferred shareholders in order to enjoy dividend distribution rights.

(3) stock options. If the company needs to expand and issue more common shares, the existing common shareholders have the right to buy a certain number of newly issued shares at a certain price lower than the market price according to their shareholding ratio, so as to maintain their original enterprise ownership ratio.

(4) the right to distribute the remaining assets. When the company goes bankrupt or liquidates, if there is any surplus company assets after paying off debts, the rest will be distributed in the order of preferred shareholders first and common shareholders later.

2. Preferred stock:

1 is relative to common stock. Mainly refers to the right to share profits and distribute surplus property prior to ordinary shares. 2. Preferred stock has two rights:

A. When the company distributes profits, shareholders with preferred shares have priority over shareholders with common shares and enjoy a fixed dividend, that is, the dividend yield of preferred shares is fixed, but the dividend of common shares is not fixed. Looking at the company's profitability, there are many profits and few profits, and there is no difference between profit and loss. The top is not capped, and the bottom is not guaranteed.

B. When the company is dissolved and the remaining property is distributed, the preferred shares are distributed before the common shares.

3. Blue chip stocks:

Refers to the stock of a company with good performance but slow growth. This kind of company has the strength to resist the economic recession, but it can't bring you exciting profits. Because these companies are mature and don't need to spend a lot of money to expand their business, the main purpose of investing in these companies is to get dividends. In addition, when investing in such stocks, the P/E ratio should not be too high, and attention should be paid to the record of stock price fluctuation during the historical economic downturn.

Fourth, growth stocks:

Refers to the stocks issued by some companies, whose sales and profits continue to grow, faster than the growth of the whole country and industry. These companies usually have great ambitions, attach importance to scientific research, and leave a lot of profits as reinvestment to promote their expansion.