Short Selling

On 25^thJanuary, 2023, US based Short-seller Hindenburg Research disclosed short positions in India's Adani Group, citing potential stock manipulation and accounting fraud in a report.

About Short Selling: A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price.

• Short selling or shorting is a trading strategy based on the expectation that the price of the security will fall.
• While fundamentally it is based on the “buy low, sell high” approach, the sequence of transactions is reversed in short selling — to sell high first and buy low later.
• Also, in short selling, the trader usually does not own the securities he sells, but merely borrows them.