Advertising

Selling short

• A bet by an investor that a stock will go down in price. The investor borrows the stock from a broker, sells it, and eventually buys it back on the market and returns the new shares to the broker. If the stock declines in price between the time the investor sells the shares and buys them back, a profit is realized.

• 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.

 
 

Follow this link for all the terms related to short.

 
 Embedded terms in definition
 Bet
Borrow
Broker
Buy
Go
Investor
Market
Profit
Purchase
Sell
Shares
Share
Short
Stock
Time
Will
 
 Related Terms
 

<< Selling group Sellside or sell side >>

Ways to Cope Financially During and After a Big Change: Here are suggestions for staying focused and avoiding costly decisions during changing times. More...

Power is the faculty or capacity to act, the strength and potency to accomplish something. It is the vital energy to make choices and decisions. It also includes the capacity to overcome deeply embedded habits and to cultivate higher, more effective ones. Stephen R. Covey

Advertising



Copyright 2009-2018 GVC. All rights reserved.