Short Selling
Definition of 'Short Selling'The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. |
|
Investopedia explains 'Short Selling'Selling short is the opposite of going long. That is, short sellers make money if the stock goes down in price.This is an advanced trading strategy with many unique risks and pitfalls. Novice investors are advised to avoid short sales. |
|
Related Definitions
Articles Of Interest
-
George Soros: The Philosophy Of An Elite Investor
George Soros spent decades as one of the world's elite investors, and even he didn't always come out on top. But when he did, it was spectacular. -
Short Selling
Learn more about this trading strategy where the investor profits from the decline of a stock price. -
Leverage Your Returns With A Convertible Hedge
Find out how you can maintain your income stream by using this type of bond strategy. -
Profit From Market Misunderstandings
By learning to identify these key trends, investors can make exceptional risk-adjusted returns. -
Short Interest: What It Tells Us
This figure can be a real eye-opener about the market sentiment surrounding a given stock. -
Is there short selling in China?
The Chinese stock market has no history of short sales. However, in 2007, the Chinese government, in an effort to increase the types of financial instruments available to market participants, ... -
Questioning The Virtue Of A Short Sale
This controversial strategy is blamed for making and breaking markets. Read on to learn more. -
Short Selling Risk Can Be Similar To Buying Long
If more people understood short selling, it would invoke less fear, which could lead to a more balanced market. -
How does somebody make money short selling?
Short selling is a fairly simple concept: you borrow a stock, sell the stock and then buy the stock back to return it to the lender. Short sellers make money by betting that the stock they sell ... -
Please explain what a short seller is on the hook for when he or she shorts a stock (i.e. dividends, rights offerings, etc.).
Short selling is hard enough to get your head around without getting into all the particulars. If you have a basic understanding of short selling, then you probably know that as a short seller, ...
Free Annual Reports