short sale (redirected from shorting)

Short Sale

A market transaction in which an investor sells borrowed securities in anticipation of a price decline.

Notes:

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.

See also: Bear, Bull Market, Buy Back, Naked Shorting, Short, Short Covering, Short Interest, Short Sale Rule, Short Squeeze, Tick Test Rules, Zero Plus Tick

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Short sale

Selling a security that the seller does not own but is committed to repurchasing eventually. It is used to capitalize on an expected decline in the security's price.

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short sale

The sale of a security that must be borrowed to make delivery. Short sales usually, but not always, entail the sale of securities that are not owned by the seller in anticipation of profiting from a decline in the price of the securities. A short sale is not permitted when the last preceding different price was higher than the current price. Also called selling short, short. See also fictitious credit, ghost stock, lending at a premium, lending at a rate, odd-lot short sales, Rule 10a-1, short against the box, short cover, synthetic short sale.