short-selling

Profiting from decline

Short-selling is a trading strategy where an investor borrows shares, sells them, and hopes to buy them back later at a lower price—profiting from the decline.

If the price rises instead, losses can be unlimited.

Short-sellers are sometimes blamed for driving down stock prices, though defenders argue they expose overvalued companies and fraud.

Also called shorting: They made millions shorting the housing market.

sentiment

bearish

Expecting market decline

distrust · fear · caution · cynicism · doubt · downside · overvalued · fraud

strategy

hedge

Boundary of planted shrubs

arbitrage · puts · positioning · catalyst · thesis · conviction · research

profit

spread

To distribute widely

unrealized · profitable · windfall · payoff

mechanics

borrowing

Temporary taking of another's

  • sharesUnits of company ownership
  • lendingTemporary provision of resources
  • coveringLayer that shields or hides

settlement · locate · rebate · recall · delivery · shorting · utilization

risk

buy-in

Agreement to participate

losses · overextension · halt · suspension

regulation

disclosure

Act of revealing information

penalties · reporting · SEC

Opposites
market position direction

short-sellinggoing long

Running a deep route

long position · buying · holding · covering · accumulating

investment sentiment

short-sellingbullish

Expecting market gains

growth investing · value investing · accumulation

market stability impact

short-sellingequity investment

Acquiring ownership in business

Family

short, sell, selling, shorts, shorter, shortest, shorten, shortened, shortening

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G