Question by  worker74 (31)

What does selling short mean?


Answer by  Mary98 (51)

In the case of a short sale, a bank will usually sell a home for less than what is actually still owed on the mortgage. In such case, the lender usually takes those proceeds and forgives the outstanding debt. The buyer is the only party to benefit in such a sale becaue the price is in his or her favor.


Answer by  Matt817 (13)

Selling Short is "borrowing a stock from your brokerage firm to sell it in the market and buy it back later. You can use this is make money if the stock goes down, because it will be cheaper when you buy it back. You need to pay interest on the borrowed stock until you buy it back.


Answer by  benstrider (8)

Selling short is the process of betting that a stock will decrease in value in the future. It involves borrowing money to buy a stock at the current price with the understanding that you will sell the stock in the future and pay the lender money you make from that sale. If the price goes down, you pocket the difference.


Answer by  Carol37 (569)

You borrow shares , sell them and hope the price goes down before you have to buy them to replace what you borrowed.

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