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Investing Glossary:
Sell Short
Copyright 2010,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Definition: |
| The act of selling Stock that you don`t own in the hope that the price will go down and you can replace it with stock purchased at a lower price. In essence, the stock is borrowed from a brokerage Firm for Delivery to the buyer and must be bought back at a Future date. If it is purchased at a lower price, the short-seller will make money.
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