What does short selling of listed companies mean?

Short selling is an investment term and a way of operating financial assets, as opposed to long selling. Short selling of listed companies means that shareholders of listed companies borrow the underlying assets first, then sell them to get cash, and then spend cash to buy the underlying assets and return them after a period of time.

For example, suppose a listed company has 65,438+0,000 shares, of which 70% are non-tradable shareholders, that is, 700 shares; Social circulation shareholders hold 30%, or 300 shares. Non-tradable shareholders contribute 1 yuan per share according to the par value of the shares, and * * * contributes to 700 yuan. Social circulation shareholders should contribute at a premium, and each 7 yuan contributes 2 100 yuan. In this way, after the establishment of this listed company, the total share capital is 1 000 shares, the total assets are 2,800 yuan, and non-tradable shareholders account for 70% of the shares, so 70% of the total assets of 2,800 yuan should be 1, 960 yuan; Social circulating shareholders should account for 30% of the total assets, 2800 yuan * * * 840 yuan-the non-circulating shareholders who originally invested in 700 yuan have now increased their value 1960 yuan, and the circulating shareholders who originally invested 2 1000 yuan are only 840 yuan.

Short selling is a common operation mode in stock futures market. It is expected that the stock futures market will have a downward trend. The operator will sell his chips at the market price, and then buy them after the stock futures fall to earn the middle price difference. Shorting is the opposite of doing long. Theoretically, it is to borrow goods to sell first and then buy them back.

Common functions of shorting include speculation, financing and hedging. Speculation refers to the expectation of future market decline, and then sell high and buy low to obtain the profit difference. Financing means shorting in the bond market and returning it in the future, which can be used as a way to borrow money. Hedging means that when the risk of assets in the hands of traders is high, the risk exposure can be reduced by shorting risky assets.