short selling
/ʃɔːrt ˈsɛlɪŋ/
borrowing and selling shares you do not own, betting the price will fall so you can buy them back cheaper
short selling in a sentence
“The hedge fund profited by short selling the overvalued tech stock before its collapse.”
Origin of short selling
Old English sceort not tall in the sense of being short of the underlying asset
Related Words
margin
borrowed money used to purchase securities, amplifying both gains and losses
portfolio
a collection of financial investments held by an individual or institution
index fund
a passively managed fund that tracks a market index such as the S&P 500
IPO
initial public offering — the first sale of a company's stock to the public
circuit breaker
a regulatory mechanism that temporarily halts trading when prices fall too sharply
bull market
a prolonged period of rising asset prices, typically defined as a 20% gain from recent lows