Short Selling

What does it Mean? 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 Says... 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.

Terms Related Links

Bear
Bear Raid
Bull Market
Buy Back
Buy To Cover
Days To Cover
Naked Shorting
Short (or Short Position)
Short Covering
Short Interest
Short Interest Ratio
Short Interest Theory
Short Sale Rule
Short Squeeze
Tick Test Rules
Zero Plus Tick

Terms Related Links
When To Short A Stock - Learn how to make money off failing shares.

Leverage Your Returns With A Convertible Hedge - Find out how you can maintain your income stream by using this type of bond strategy.

Finding Short Candidates With Technical Analysis - Learn how to distinguish tops and bottoms in the equity market when short selling.

Short Selling Tutorial - Have you ever correctly predicted a stock's decline or wondered how to be profitable in a bear market? Find out how and the risks involved.

Short Interest: What It Tells Us - Find out how this figure can be a real eye-opener on market sentiment of a given stock.

The Short And Distort - Stock Manipulation In A Bear Market - This sinister version of short selling tries to profit by generating fear in the market place. Find out how you can help prevent "short and distort".

How does the party loaning shares in a short sale transaction benefit?

Explain what a short seller is on the hook for in regards to dividends, rights, etc.

How does somebody make money short selling?

I want to try short selling, but how can I sell something that I don't own?

Are ETFs subject to the short sale uptick rule?




add investopedia foot
www.investopedia.com