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Herbalife has also said that it will begin disclosing more information about its customers and product sales
-- but Ackman countered that the change wasn't enough for him. A surge in Herbalife stock would be disastrous for investors who, like Ackman, have taken a "short" position in the company. Selling a stock short is a tactic in which an investor borrows shares in a company from a broker and then immediately sells them on the open market. The investor anticipates that the stock price will fall, allowing him or her to buy back the stock at a lower price in the future. The investor then returns the borrowed shares to the broker, pocketing the difference. If stock rises instead, however, the investor could have to buy it back at a higher price than he or she sold it for, resulting in a loss.
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