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Short selling, by definition, means you don’t own the stock when you sell it. Investors with huge stakes in Tesla would just sell, not short sell. Buying a put
by jotakami 7y ago
Short selling, by definition, means you don’t own the stock when you sell it. Investors with huge stakes in Tesla would just sell, not short sell.
Buying a put option would be how big investors manage downside risk, or possibly selling covered calls.
- nabla9 7y agoShort selling against stock you own is called short sell against the box. >A "short sell against the box" is also known as "shorting against the box." Sellers use this technique when they do not actually want to close out their position on a stock. The strategy is generally used by investors who believe the stock is due for a fall in price, but do not wish to sell because they believe the fall is temporary and the stock will rebound quickly. https://www.investopedia.com/terms/s/sellagainstthebox.asp https://www.investopedia.com/terms/s/sellagainstthebox.asp