Right now in India, everyone is talking about the Hindenburg and Adani short selling, but what exactly is short selling? Short selling is a trading strategy where investors bet on the decline of a company's share price. Let's understand this process with an example. Suppose the price of one share of XYZ is ₹100, and you believe that the price of this share might go down. To make money in this situation, you would first borrow 10,000 shares of XYZ from your broker and sell them in the market at the current price. After some time, if the share price drops to ₹90, you can buy back those 10,000 shares, which you originally sold for ₹1 lakh, now for ₹90,000. In this way, the difference between the selling price and the buying price becomes the profit for the short seller, which in this case is ₹10,000. As for Hindenburg, they likely created a short position in Adani Group's shares beforehand. And when they released their reports, investor confidence dropped, causing the stock price to fall, which allowed them to make a substantial profit.