Introduction to Short Selling
Worked Example: These Figures Today
The companies used as examples above, with the current figures behind them. Illustrations of the metric — not a ranking, not a shortlist, and not a recommendation.
| Ticker | Company | Price | Change | Market Cap | MoonshotScore |
|---|---|---|---|---|---|
| GME | GameStop Corp. | $23.90 | -3.71% | $12.1B | 70 |
| AMC | AMC Entertainment Holdings, Inc. | $2.89 | -0.34% | $2.6B | — |
| TSLA | Tesla, Inc. | $391.62 | +5.21% | $1.5T | 57 |
Example Shorted Stocks
“MoonshotScore rates a US-listed stock 0 to 100 using five sector-relative pillars. Higher means stronger numbers across business quality, safety, valuation, growth and momentum. Eligible common stocks and ADRs only; funds, ETFs, warrants, units, SPACs, preferreds, and notes carry none. It is built for education and deeper due diligence, not financial advice.”
Questions worth resolving before acting on the screen
What are the risks of short selling?
Short selling carries unlimited risk, as a stock's price can theoretically rise indefinitely. Short sellers may also face margin calls if the stock price increases, requiring them to deposit additional funds to cover potential losses.
How is short selling different from buying stocks?
Buying stocks involves purchasing shares with the expectation that their value will increase over time. Short selling, conversely, involves borrowing shares and selling them, anticipating a price decrease to repurchase them at a lower cost.
What is a short squeeze?
A short squeeze occurs when a stock with high short interest experiences a rapid price increase, forcing short sellers to cover their positions by buying back the stock. This can lead to further price increases, exacerbating losses for short sellers.