short sellers
Bet against stocks
Short sellers are investors who profit when a stock's price falls.
They borrow shares and sell them immediately, betting they can buy them back later at a lower price—pocketing the difference.
If the price rises instead, short sellers face potentially unlimited losses since there's no ceiling on how high a stock can climb.
Short selling is controversial; some view it as predatory, while others argue short sellers expose overvalued companies and fraud.
Short sellers made billions when the housing market collapsed.
Largest equities market
- NASDAQElectronic securities exchange
- securitiesTradeable financial assets
- equitiesOwnership stakes in corporations
- stocksOwnership stakes or inventory
options · puts · swaps · futures · exchange · brokerage · clearinghouse · settlement
Expecting market decline
- contrarianChronic majority-opposer
- pessimismExpecting unfavorable outcomes
- speculationUnproven theorizing or risky investment
- hedgeBoundary of planted shrubs
Broker's request for funds
- buy-inAgreement to participate
- volatilityRapid, unpredictable changeability
- exposureState of being unprotected
- leverageBorrowed capital for amplified returns
counterparty · collateral · liquidation · meme stocks · assignment · halt
Increases in value
- returnsProfits from investments
- declineDecrease or refuse
- downturnEconomic decline period
- crashSudden violent impact
correction · bear market · collapse · windfall · devaluation · overvaluation
Pooled alternative investment vehicles
- bearsSupports or tolerates
- speculatorsThose betting on markets
- tradersProfessional buyers and sellers
- activistsPeople working for causes
arbitrageurs · institutional · retail · Hindenburg · Muddy Waters
NYSE
Largest equities market
- NASDAQElectronic securities exchange
- securitiesTradeable financial assets
- equitiesOwnership stakes in corporations
stocks · options · puts · swaps · futures · exchange · brokerage · clearinghouse · settlement
bearish
Expecting market decline
- contrarianChronic majority-opposer
- pessimismExpecting unfavorable outcomes
- speculationUnproven theorizing or risky investment
hedge · arbitrage · borrow · locate · utilization · rebate · recall
margin call
Broker's request for funds
- buy-inAgreement to participate
- volatilityRapid, unpredictable changeability
- exposureState of being unprotected
leverage · counterparty · collateral · liquidation · meme stocks · assignment · halt
gains
Increases in value
crash · correction · bear market · collapse · windfall · devaluation · overvaluation
hedge funds
Pooled alternative investment vehicles
- bearsSupports or tolerates
- speculatorsThose betting on markets
- tradersProfessional buyers and sellers
activists · arbitrageurs · institutional · retail · Hindenburg · Muddy Waters