Short Sale (Noun)
Meaning
Sale of securities or commodity futures not owned by the seller (who hopes to buy them back later at a lower price).
Classification
Nouns denoting acts or actions.
Examples
- The investor engaged in a short sale of the company's stocks, betting they would drop in value due to the financial crisis.
- Short sale is a high-risk strategy often used by experienced traders and investors.
- The market volatility led to an increase in short sales, causing the stock price to plummet further.
- The short sale transaction was successful as the investor managed to buy back the shares at a significantly lower price.
- A short sale is typically executed when a trader expects a decline in the price of a security in the near future.