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selling short

selling short in Culture

selling short definition


Borrowing shares of stock from a brokerage firm (see broker) and then selling in the expectation that the price of the stock will decline. If it does, the borrower buys them back at a reduced price, returns them to the brokerage, and makes a profit. If it rises, the investor loses money. To sell short is to “short” a stock.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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