"Short-selling," the legal but questionable tactic of betting against a stock in order to make a profit, is set to undergo strict rule changes from U.S. securities regulators.

Successful short-sellers borrow shares from a brokerage firm and then sells them, hoping that the price will go down so that when it’s time to pay the brokerage firm back, he can buy the same amount of shares at a lower price and realize a profit.

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