English Lexicon

Short Selling

/ʃɔrt ˈsɛlɪŋ/
nounCEFR C1 (Advanced)Top #1500 frequency
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Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    The practice of selling financial instruments that the seller does not currently own, with the intention of buying them back at a lower price.

    "Investors often engage in short selling to profit from anticipated declines in stock prices."
  2. 2

    A strategy used in trading where an investor borrows shares to sell them, hoping to repurchase them later at a reduced price.

    "Short selling can be risky, as losses can be unlimited if the stock price rises."

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Antonyms & Contrasting Words (1)

Linguistic Origin & Historical Etymology

The term 'short selling' originated in the early 17th century from the practice of selling goods that one did not own, with the expectation of buying them back at a lower price. The 'short' refers to the position of being short on the asset, indicating a bet against its value.

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