short selling Sentence Examples
- Short selling involves selling a borrowed asset with the expectation of buying it back at a lower price, profiting from the price decline.
- Investors engage in short selling when they anticipate a decrease in the value of a stock or other asset.
- Short selling can be a risky strategy, as it carries the potential for unlimited losses if the asset's price rises.
- Short sellers borrow shares of a stock from a broker, which are then sold in the open market.
- The short seller is obligated to buy back the borrowed shares at a later date, regardless of the share price.
- If the stock price falls, the short seller can buy it back at a lower price, closing out their position and making a profit.
- Short selling can help hedge against potential losses in other investments.
- Short sellers sometimes use leverage to amplify their potential gains, but this also increases their risk.
- Regulators closely monitor short selling to prevent excessive volatility in financial markets.
- Short selling can contribute to market liquidity by providing sellers for assets in high demand.
short selling Meaning
Wordnet
short selling (n)
sale of securities or commodity futures not owned by the seller (who hopes to buy them back later at a lower price)
Synonyms & Antonyms of short selling
No Synonyms and anytonyms found
FAQs About the word short selling
sale of securities or commodity futures not owned by the seller (who hopes to buy them back later at a lower price)
No synonyms found.
No antonyms found.
Short selling involves selling a borrowed asset with the expectation of buying it back at a lower price, profiting from the price decline.
Investors engage in short selling when they anticipate a decrease in the value of a stock or other asset.
Short selling can be a risky strategy, as it carries the potential for unlimited losses if the asset's price rises.
Short sellers borrow shares of a stock from a broker, which are then sold in the open market.
