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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.
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.