Investors who borrow shares from their brokers and sell them in the open market are said to hold a short position in the stock. The borrowed stock is returned by buying it at a later date from the open market. If there is a fall in the stock price, then investors make a profit by buying it at a price that is lower than what they sold it for.

Random Finance Terms for the Letter S

  • Short Covering
  • Short Hedge
  • Short Interest
  • Short
  • Short Sale
  • Short Selling
  • Short Squeeze
  • Short Straddle
  • Shortage Cost
  • Shortfall Risk