short seller
Bets on decline
A short seller is an investor who profits from a stock's decline.
The strategy involves borrowing shares, selling them at the current price, then buying them back later at a lower price to return to the lender—pocketing the difference.
Short sellers bet against companies, which makes them controversial: Short sellers accused the firm of fraud before it collapsed.
The risk is theoretically unlimited, since a stock can rise indefinitely.
Private investment partnership
- bearishExpecting market decline
- margin callBroker's request for funds
- arbitrageExploiting price discrepancies
- leverageBorrowed capital for amplified returns
put option · stop-loss · locate · bear raid
Mutual giving and receiving
- securitiesTradeable financial assets
- stocksOwnership stakes or inventory
- tradingExchanging for value
- equityImpartial treatment or ownership value
shares · margin · liquidity · volatility · brokerage · position · futures · options
Expecting market decline
- lossesThings subtracted from standing
- plummetRapid downward descent
- downturnEconomic decline period
- slumpExtended period of decline
dip · dive · drop · fall · tumble · slide · crash · correction
Positive return received
- windfallUnanticipated lucky gain
- yieldProduce or relinquish
- returnGo back again
- earningsMoney gained from work
profit taking · premium · interest · proceeds · rebate
Chicago blues founding figure
- GameStopRetail chain for consoles
- EnronFailed energy corporation
- Lehman BrothersDefunct investment bank
hedge fund
Private investment partnership
- bearishExpecting market decline
- margin callBroker's request for funds
- arbitrageExploiting price discrepancies
leverage · put option · stop-loss · locate · bear raid
exchange
Mutual giving and receiving
- securitiesTradeable financial assets
- stocksOwnership stakes or inventory
- tradingExchanging for value
equity · shares · margin · liquidity · volatility · brokerage · position · futures · options · hedging
bearish
Expecting market decline
slump · dip · dive · drop · fall · tumble · slide · crash · correction · collapse
gain
Positive return received
earnings · profit taking · premium · interest · proceeds · rebate
Muddy Waters
Chicago blues founding figure
- GameStopRetail chain for consoles
- EnronFailed energy corporation
- Lehman BrothersDefunct investment bank
- investorsinvestor, retail investors, retail investor, angel investors, institutional investors
- market participantsbuyer, vendor, supplier, consumer, purchaser
- speculatorsday trader, futures trader, options trader, currency trader, swing trader
- Wall Streetstock market, bond market, stocks, shares, Wall Street
- traderstrader, merchant, retailer, vendor, dealer
- stakeholdersshareholder, stockholder, investor, owner, customer
short sellerpromoter
One who organizes events
booster · tout · cheerleader · market maker · activist investor
short, seller, sell, shorter, shortest, shortly, shortness, shorten, shortened