Meaning SELLING SHORT: Selling a stock not actually owned. If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy the stock back on the open market. For instance, you borrow 1000 shares of XYZ on July 1 and sell it for $8 per share. Then, on Aug. 1, you purchase 1000 shares of XYZ at $7 per share. You've made $1000 (less commissions and other fees) by selling short
More terms such as Selling short in Dictionary S.
- Definition Sharpe Ratio:
- Examples portfolio's excess return relative to the total variability of the portfolio. Related: Treynor index. Named after William Sharpe, Nobel Laureate, and developer of the capital asset pricing model selling short definition.
- Definition Sydney Futures Exchange (SFE):
- Examples The derivatives market of Australia selling short explain.
- Definition Step-Down Note:
- Examples A floating-rate note whose interest rate declines after a specified period of time selling short what is.
- Definition Short:
- Examples One who has sold a contract to establish a market position and who has not yet closed out this position through an offsetting purchase; the opposite of a long position. Related: Long selling short meaning.
- Definition Subordination Clause:
- Examples A provision in a bond indenture that restricts the issuer's future borrowing by subordinating future lenders' claims on the firm to those of the existing bondholders selling short abbreviation.
