Short sale is an investment term and an operating mode of financial assets, as opposed to long. When a listed company is shorted, the shareholders of the listed company first borrow the underlying assets, then sell them to obtain cash. After a period of time, they spend cash to buy the underlying assets and return them.

For example: Assume a listed company with a total of 1,000 shares, of which non-tradable shareholders of the listed company account for 70% of the equity, or 700 shares; social tradable shareholders account for 30% The equity is 300 shares. Non-tradable shareholders have to invest 700 yuan based on the face value of the stock at 1 yuan per share, but the public shareholders have to invest at a premium, 7 yuan per share, with a total investment of 2,100 yuan. In this way, after the establishment of this listed company, it will have a total of 1,000 shares and total assets of 2,800 yuan. Non-tradable shareholders account for 70% of the shares, so 70% of the total assets of 2,800 yuan should be 1,960 yuan; social tradable shareholders , should occupy 30% of the total assets of 2,800 yuan, totaling 840 yuan - the non-tradable shareholders who originally contributed 700 yuan now have 1,960 yuan in value, while the tradable shareholders who originally contributed 2,100 yuan are left with only 840 yuan.

Short selling is a common operation method in the stock futures market. The operation is to anticipate that the stock futures market will have a downward trend. The operator sells the chips in hand at the market price and waits for the stock futures to fall before buying again and making a profit. Take the middle price difference. Short selling is the reverse operation of long selling. In theory, it means borrowing goods first, selling them, and then buying them back.

Common uses of short selling include speculation, financing, and hedging. Speculation refers to the expectation that the market will fall in the future, selling high and buying low to obtain profits from the price difference. Financing is taking a short position in the bond market and paying it back in the future, which can be used as a way to borrow money. Hedging means that when the asset risk in the hands of traders is high, they can reduce risk exposure by shorting risky assets.