Buying stocks is said to be going long (you expect an increase in the stock’s price)

Going short is anticipating the market decreasing

Short selling: Selling a borrowed stock.

All short selling is done on margin account
 Always done by speculators (they quickly get in and get out of it)
 Stocks can go to zero
 Going short you could face an infinite loss (selling at $30, then stock increases to $75 and more to infinity)

Squeeze on the shorts – people trying to cover their short interest causes prices to increase.  (More buyers than sellers causes the price to increase)

Japan markets- no short selling

Short selling corrects overpriced stocks.