Business and Personal Finance Dictionary

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• GO SHORT
  
  When you go short, you borrow shares of stock from your broker, sell the borrowed shares at their current market price, and pocket the money, minus commission. The reason you go short, which is also known as selling short, is because you expect the stock's price to decline in the near future. If it does, you can buy shares at the lower price and return the number you borrowed, plus interest, to your broker. The amount you make on the transaction depends on the difference between the price at which you sold and the price at which you can repurchase the shares, plus the amount of time you have to wait for the price to drop. However, there is always the risk that the price will remain stable or even increase, which could mean losing money on the transaction.
  
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