The act of selling stocks, currency, or assets before a price decline, and then repurchasing them afterwards is known as 'Short Selling'. In 1992, billionaire George Soros noticed that the economic behaviour in the UK suggested the pound sterling could soon undergo a devaluation. He short sold £10 billion, forcing the UK to devalue the currency, and came out with a profit of £1 billion. The manoeuvre is estimated to have cost the country £3.3, and earned Soros the name 'The Man Who Broke the Bank of England'. Regardless, many argue that short selling is a healthy part of any economy, and helps expose faults, weaknesses, and fraudulent practices in stock markets.
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