Short Selling (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 hedge fund's strategy involved short selling stocks of companies that were heavily indebted and likely to go bankrupt.
- Short selling is a high-risk investment tactic that can result in significant losses if not executed properly.
- The investor made a fortune from short selling the tech stock before its price plummeted due to poor earnings reports.
- The company's stock price was heavily impacted by short selling, which drove down its value and made it vulnerable to takeover.
- Regulators have been cracking down on short selling practices that are deemed manipulative or abusive, such as naked short selling.