Selling short

If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy the stock back on the open market. For instance, you borrow 1000 shares of XYZ on July 1 and sell it for $8 per share. Then, on Aug 1, you purchase 1000 shares of XYZ at $7 per share. You've made $1000 (less commissions and other fees) by selling short. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • selling short — See short selling. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • selling short — Selling a stock not actually owned. If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy the stock back on the open market. For instance, you… …   Financial and business terms

  • selling short — selling monetary exchange or stocks that are not under the ownership of the seller …   English contemporary dictionary

  • selling short — See short selling …   Big dictionary of business and management

  • selling short — See short sale …   Ballentine's law dictionary

  • selling short against the box — selling short stock that is actually owned by the seller but held in the box, meaning it is held in safekeeping. The seller borrows securities needed to cover as the stock in the box may be inaccessible, or the seller may not wish to disclose… …   Financial and business terms

  • short selling — The practice of selling securities not owned by the seller in the hope that the price subsequently falls and they can then be bought back at a lower price. The seller may have borrowed the necessary securities on a temporary basis in order to… …   Law dictionary

  • selling — sell‧ing [ˈselɪŋ] noun [uncountable] 1. COMMERCE FINANCE when people sell products, services, shares etc: • The dollar s decline came amid hectic dollar selling in the Japanese currency market. • In New York, dealers reported heavy selling by… …   Financial and business terms

  • Short (finance) — Schematic representation of short selling in two steps. The short seller borrows shares and immediately sells them. He then waits, hoping for the stock price to decrease, when the seller can profit by purchasing the shares to return to the lender …   Wikipedia

  • Short selling — Establishing a market position by selling a security one does not own in anticipation of the price of that security falling. The New York Times Financial Glossary * * * short selling short selling ➔ selling * * *    The selling of instruments… …   Financial and business terms

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