Back to Finance Glossary | Previous PageShort Selling refers to the sale of borrowed securities.
When someone sells a security short, one borrows securities, usually from a brokerage, and sells them.
One then buys the same securities in order to repay the brokerage.
One Sells a security short if one expects the price of a security to fall and that they will be able to sell the borrowed security at a higher price than the price it was bought.
Short selling is a common practice of hedge funds.
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