Shorting is a stock trading technique / tool. Essentially you commit to selling a stock that you don't have yet, in the hopes that the price will go down - you then buy from the reduced market price in order to deliver the committed stock. The way, you make money from the difference in the pricing. If however the reverse comes true you'll have to fork out more to fulfil your commitment to the buyer.
Ethical or not.. Is a different discussion altogether :)
In Singapore and many countries, you can only do covered shorts, that is, borrow first from someone (usually your broker) to sell to a market participant. This is as opposed to a naked short, when you run the risk of not having a stock to actually deliver.
Shorting is a stock trading technique / tool. Essentially you commit to selling a stock that you don't have yet, in the hopes that the price will go down - you then buy from the reduced market price in order to deliver the committed stock. The way, you make money from the difference in the pricing. If however the reverse comes true you'll have to fork out more to fulfil your commitment to the buyer.
Ethical or not.. Is a different discussion altogether :)
In Singapore and many countries, you can only do covered shorts, that is, borrow first from someone (usually your broker) to sell to a market participant. This is as opposed to a naked short, when you run the risk of not having a stock to actually deliver.