a b c d e f g h i j k l m n o p q r s t u v w y z search

TeachMeFinance.com - explain short position short position -- the status of a transaction in which an investor has sold stock that he or she borrowed but did not own at the time of sale. The position remains short until the investor actually buys stock in sufficient quantity in order to return the same amount of stock that was borrowed to the stock lender. See selling short. selling short -- a technique employed by an investor who believes the market price of a security will drop. The investor borrows stock, which he then sells (even though he doesn't own it). If the price of the stock drops, the investor can buy the same stock for less than what he originally sold it for, and make a profit, after paying the brokerage commission for borrowing the stock. The investor must return a like number of shares of the borrowed stock to the stock lender. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.