Definition of sell short in English English dictionary
underestimate the real value or ability of; "Don't sell your students short--they are just shy and don't show off their knowledge"
sell securities or commodities or foreign currency that is not actually owned by the seller, who hopes to cover (buy back) the sold items at a lower price and thus to earn a profit
A strategy that profits from a security price decline It is initiated by borrowing the security from a broker-dealer and selling it in the open market This strategy is closed (covered) at a later date by buying back the security and returning it to the lending broker-dealer
An arrangement with a broker to borrow and sell securities The borrowed securities are replaced with securities purchased later Short sells let investors earn profits from falling securities prices 578
Selling a security that you don't own, in the hope that the price will decrease before you buy it back When you short sell you are borrowing the security from another investor, this means you could be required to buy the security back and return it at any time, you are also required to pay the lender any dividends or distributions that the security makes while you are borrowing it The seller must declare a short sale when placing the order