short selling


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Related to short selling: hedging

short selling

n
(Stock Exchange) finance the practice of selling commodities, securities, currencies, etc that one does not have in the expectation that falling prices will enable one to buy them in at a profit before they have to be delivered

short selling

The practice of selling shares that one does not own but that one has an agreement to purchase in the future. For example, if a hedge fund believes that the share price of a company is likely to fall it may agree with a broker to borrow 100 shares of that company today with the understanding that it will pay the market price for then in 30 days time. The hedge fund then sells these 100 borrowed shares at the current price with the expectation that when the 30-day period has expired it will pay less for them than it has received for selling them today.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.short selling - sale of securities or commodity futures not owned by the seller (who hopes to buy them back later at a lower price)
trading - buying or selling securities or commodities
References in periodicals archive ?
The Regulated Short Selling enables investors to short securities listed on DFM through selling borrowed shares with a commitment to return to the lender based on the mutually-signed agreement.
The Dubai Financial Market has introduced regulated short selling which it hopes will boost liquidity.
The DFM said in a statement the regulated short selling enables investors to short securities listed on DFM through selling borrowed shares with a commitment to return to the lender based on the mutually signed agreement.
Abu Dhabi Securities Exchange (ADX), the region's leading financial market today announced the launch of its latest investment service 'Technical Short Selling' (TSS), an addition to the existing suite of services and products provided by ADX to investors through brokerage firms.
HONG KONG, May 10, 2017 - (ACN Newswire) - Short-sellers have been terrorising the Hong Kong capital market for years with private enterprises facing short selling attacks that caused their stock prices to plummet.
In this latest wave, the short selling of crude has been accompanied by shorting of gasoline futures and options as well.
We show that short selling is abnormally high during the predowngrade period--indicating that short sellers can predict rating downgrades.
The Securities and Exchange Commission announced Wednesday that a Long Island-based proprietary trading firm and its owner have agreed to pay $7.2 million to settle the largest-ever monetary sanctions for Rule 105 short selling violations.
* "Naked Short Selling: Is it Information-Based Trading?" by Harrison Liu, Sean T.
Banning short selling stops traders from selling shares on the expectation they will fall and limits the speed at which markets dive.
The new rules also detail how ESMA is to determine the shares that are exempt from Regulation 236/2012 on short selling by virtue of their principal trading venue being in a third country.
The FAS introduced the restriction on short selling amid a recent increase in unreasonable plunges in share prices before or after the announcement of public offerings, arousing speculation about insider trading.