Definitions for sell short
sell short

Princeton's WordNetRate this definition:0.0 / 0 votes

1. sell shortverb

   sell securities or commodities or foreign currency that is not actually owned by the seller, who hopes to cover (buy back) the sold items at a lower price and thus to earn a profit

2. sell shortverb

   underestimate the real value or ability of

   "Don't sell your students short--they are just shy and don't show off their knowledge"

WikipediaRate this definition:0.0 / 0 votes

1. sell short

   In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises. There are a number of ways of achieving a short position. The most fundamental method is "physical" selling short or short-selling, which involves borrowing assets (often securities such as shares or bonds) and selling them. The investor will later purchase the same number of the same type of securities in order to return them to the lender. If the price has fallen in the meantime, the investor will have made a profit equal to the difference. Conversely, if the price has risen then the investor will bear a loss. The short seller must usually pay a fee to borrow the securities (charged at a particular rate over time, similar to an interest payment), and reimburse the lender for any cash returns such as dividends that were due during the period of lease. Short positions can also be achieved through futures, forwards or options, where the investor can assume an obligation or a right to sell an asset at a future date at a price that is fixed at the time the contract is created. If the price of the asset falls below the agreed price, then the asset can be bought at the lower price before immediately being sold at the higher price specified in the forward or option contract. A short position can also be achieved through certain types of swap, such as contracts for differences. These are agreements between two parties to pay each other the difference if the price of an asset rises or falls, under which the party that will benefit if the price falls will have a short position. Because a short seller can incur a liability to the lender if the price rises, and because a short sale is normally done through a broker, a short seller is typically required to post margin to its broker as collateral to ensure that any such liabilities can be met, and to post additional margin if losses begin to accrue. For analogous reasons, short positions in derivatives also usually involve the posting of margin with the counterparty. Any failure to post margin promptly would prompt the broker or counterparty to close the position. Short selling is an especially systematic and common practice in public securities, futures or currency markets that are fungible and reasonably liquid. A short sale may have a variety of objectives. Speculators may sell short hoping to realize a profit on an instrument that appears overvalued, just as long investors or speculators hope to profit from a rise in the price of an instrument that appears undervalued. Alternatively, traders or fund managers may use offsetting short positions to hedge certain risks that exist in a long position or a portfolio. Research indicates that banning short selling is ineffective and has negative effects on markets. Nevertheless, short selling is subject to criticism and periodically faces hostility from society and policymakers.

ChatGPTRate this definition:0.0 / 0 votes

1. sell short

   Selling short, or short selling, is an investment or trading strategy in which an investor sells securities, typically shares of stocks, that they do not own at the time of selling. The investor borrows these securities from a broker to complete the transaction. The goal is to profit from a decline in the price of the securities by buying them back at a lower price in the future. The difference between the sale price and the repurchase price represents the investor's profit or loss.

Matched Categories

1. • Commerce
   • Sell
   • Underestimate

How to pronounce sell short?

1. Alex

   US English

   David

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   Mark

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   Daniel

   British

   Libby

   British

   Mia

   British

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   Australian

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   Australian

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   South African

How to say sell short in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of sell short in Chaldean Numerology is: 8

2. Pythagorean Numerology

   The numerical value of sell short in Pythagorean Numerology is: 2

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=sell short
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Sell_Short
3. ^ ChatGPT
   https://chat.openai.com