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short selling

selling borrowed assets hoping to buy them back cheaper

In Banking & Finance

In more detail

1. (noun) a trading strategy where an investor borrows shares and sells them, hoping to buy them back later at a lower price to make a profit

2. (noun) the act of selling borrowed shares in this way

Examples

• 1. Short selling became controversial during the financial crisis when investors bet against banks.
• 2. The trader engaged in short selling by borrowing 1,000 shares and immediately selling them at the current market price.

Nearby in Banking & Finance

par value, quantitative tightening, reserve requirement, sovereign debt, tranche, underlying