short sale Borrowing a security (or commodity futures contract) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. SEC rules allow investors to sell short only on an uptick or a zero-plus tick, to prevent pool operators from driving down a stock price through heavy short-selling, then buying the shares for a large profit. also called selling short. see also borrowed stock, called away, hedged tender, lending at a rate, members' short sale ratio, sale, securities loan, selling short against the box.
|