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 Glossary   >   S   >   "Short position" Definition   

        Short position

Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make good delivery to the buyer. Eventually, the shares must be bought back to close out the transaction. This technique is used when an investor believes the stock price will go down.

Short position


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Short position - Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make good delivery to the buyer. Eventually, the shares must be bought back to close out the transaction. This technique is used when an investor believes the stock price will go down.


Short position : occurs when a person sells stocks he or she does not yet own. shares must be borrowed, before the sale, to make good delivery to the buyer. eventually, the shares must be bought back to close out the transaction. this technique is used when an investor believes the stock price will go down.