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Selling stock that an investor does not own by borrowing shares from a broker. The assumption is that the price will fall. The investor anticipates buying (covering the short) the shares back at a lower price than what they were sold for, recognizing the difference as a profit. Antithesis of going long.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
To take a short position. That is, one goes short when one conducts a short sale, writes an option, sells a futures contract, or sells any other security where further action may be necessary. See also: Go long.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Selling an investment asset that is not owned. An example of such an asset would be shares of stock you borrowed through your broker. Going short means you owe what you have sold.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.