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 Static Theory Of Capital Structure:
- Examples Theory that the firm's capital structure is determined by a trade-off of the value of tax shields against the costs of bankruptcy selling short definition.
- Definition Smidge:
- Examples Small amount of price, usually +/- 1/8 or 1/4 selling short explain.
- Definition Secured Debt:
- Examples Debt that has first claim on specified assets in the event of default selling short what is.
- Definition Stock:
- Examples Ownership of a corporation indicated by shares, which represent a piece of the corporation's assets and earnings selling short meaning.
- Definition Stock Record:
- Examples The accounting a brokerage firm keeps of all securities held in inventory selling short abbreviation.
