What does it mean: ‘to short a stock’?

By WeInvest Editor’s Desk

Most of us have heard of going long in the stock market and sometimes you may come across the phrase going short or shorting the stock. Here’s a quick tutorial on what it means.

When an investor goes long on an investment, it means that he or she has bought a stock believing its price will rise in the future. Conversely, when an investor goes short, he or she is anticipating a decrease in share price.

Short selling is the selling of a stock that the seller doesn’t own. More specifically, a short sale is the sale of a security that isn’t owned by the seller, but that is promised to be delivered. That may sound confusing, but it’s actually a simple concept. Check out this video for a quick explanation.

Video by WallStreetSurvivor.com

Read more here: https://weinvest.net/blog/what-does-it-mean-to-short-a-stock/

SHARE