trading
short selling
Borrowing and selling shares you don't own, hoping to buy them back later at a lower price and profit from the difference.
Example
"He profited from short selling the company's stock before its earnings report disappointed investors."
💡 Memory Tip
SHORT selling = selling something you're SHORT on (don't own). You borrow it, sell it, and hope to buy it back cheaper.
Etymology
Short (lacking, not owning) + selling — selling what you don't currently own.
Common Misspellings
short selingshort-sellingshort saleingshort sell
Related Terms
See Also
derivatives