Glossary: Short selling
Selling of a security (mainly shares) that the trader does not own. The shares are borrowed from a long-term investor (a pension fund), sold into the market and, when the shares fall in price, they are bought back at the lower price and then returned to the lender with a small commission. The short seller’s profit is the difference between the price at which the borrowed shares were sold and the price at which the borrowed shares were bought back.
Relevant to: Stocks & Shares
