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Short Selling

   Also found in: Dictionary/thesaurus, Legal, Wikipedia 0.01 sec.
Short selling
Establishing a market position by selling a security one does not own in anticipation of the price of that security falling.

Short Sale
The sale of borrowed securities. In a short sale, one borrows securities, usually from a brokerage, and sells them. One then buys the same securities in order to repay the brokerage. Selling short is practiced if one believes that the price of a security will soon fall. That is, one expects to sell the borrowed securities at a higher price than the price at which one will buy in order to return the securities. Selling short is one of the most common practices of hedge funds. This is also called establishing a bear position. See also: Margin account.


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The thought of short selling came to me as I watched many politicians and news anchors react to the actions of the government.
The Malaysian stock exchange reintroduced regulated short selling in 2007 after a gap of nearly a decade in an attempt to boost turnover and foreign interest in the domestic market.
Short selling a stock is a legal trading technique where a trader borrows securities from a shareholder with the understanding that they will be returned upon demand.
 
 
 
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