|
|
What is short selling?
1) To sell something (usually a stock) that one does not own, with the anticipation that the item's value will decline and they will be able to buy it back at a later date for a lesser price.
2) To deny someone credit that they deserve. This is generally something a person does to him/herself.
1)
I sold your sister short last year for $100, then bought her back this year for a can of Skoal and a junior bacon cheeseburger. Damn that rag has really started to circle the drain.
2)
You: "So you're not going to let me beat it up, are you?"
Girl: "Nope, sorry. Denied! But don't sell yourself short...3 inches isn't really that small. At least you've got my chihuahua beat...I think."
(sell short)
short selling - video
Short selling - what is it?
(FINANCE) borrowing securities for immediate sale, in anticipation of a sharp decline. Short selling requires strong nerves and excellent market timing; it also requires the ability to locate tranches of securities to borrow. If the short seller is correct, then she can buy back the securities at a much lower price, and lock in very high profits with very little initial investment.
Closely related to the concept of a short position. However, a short position includes buying put options (for example), while a long position could include short selling put options. So they are not exactly the same.
If a short sellers are wrong about the market, they are left hastily covering shorts, or buying the item they borrowed at a HIGHER price than they sold it for.
Jim Fisk was a master of the short squeeze; he appeared to cooperate with short selling until he was able to call in loans, forcing his counterparties to cover their shorts.