Short selling/shorting of short, Find Credit Unions, Fiduciaries, Savings Plans, Trust Companies, Letters Of Credit, Registered Agents
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Short selling/shorting of short - Depository Glossary Terms and Abbreviations
A short seller looks for companies whose shares could fall in value. Short sellers borrow stock in a company from a third party for a set period of time, at an agreed fee. The short seller sells the borrowed stock with the intention of buying the stock back at a later date, at a lower price. The stock is then returned to the lender, with the profit being the difference between the two prices, less the agreed fee.