short selling
This term describes a high-risk financial strategy used by investors who believe a stock's price will drop. It carries a strong connotation of speculation and aggression, as the investor is effectively betting against a company's success. In professional financial discourse, it is a standard technical term, but in general news, it often appears in contexts discussing market volatility or "short squeezes."
As a gerund-based noun referring to a specific financial practice or mechanism, it is treated as an uncountable noun. It describes the activity itself rather than individual instances of the act, meaning it does not typically take a plural form in standard economic usage.
Meanings
The practice of selling a security that the seller does not own, typically by borrowing it from a broker, with the intention of buying it back later at a lower price to make a profit.
The hedge fund engaged in aggressive short selling of the tech company's stock to bet on its decline.