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You can now ‘borrow’ shares for trading at bourse

The trading floor at Nairobi Securities Exchange. (Photo: Beverlyne Musili/Standard)

You will soon be able to sell shares of a company which you do not directly own if the Capital Markets Authority (CMA) introduces short selling.

A short sell is where you borrow shares of a company, sell them in anticipation that their prices will fall and when they do, pay back your lender and remain with the profit.

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