Post date: May 07, 2012 1:32:33 PM
The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short.
Selling short is the opposite of going long. That is, short sellers make money if the stock goes down in price.
This is an advanced trading strategy with many unique risks and pitfalls. Novice investors are advised to avoid short sales.
Read more: http://www.investopedia.com/terms/s/shortselling.asp#ixzz1uBtMyI9h
www.investopedia.com/university/shortselling/
Discover how to make money on a falling security with short selling.