3 ms·
You can short sell over a term of years, usually at interest rates of ~1% (but varying depending on the company).[1] If you believe that there is even a 20% ch
by nickff 11y ago
You can short sell over a term of years, usually at interest rates of ~1% (but varying depending on the company).[1] If you believe that there is even a 20% chance of a company going bankrupt over the course of the next 5 years, placing the bet will only cost you 5%-6% of your potential winfall, so your expected ROI is 15%. Commodity futures can also be purchased a few years out, as can options.
[1] https://en.wikipedia.org/wiki/Short_(finance)#Short_selling_terms https://en.wikipedia.org/wiki/Short_(finance)#Short_selling_...