The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

SELL SHORT Definition & Legal Meaning

Definition & Citations:

A strategy in trading where an investor will borrow shares from a security or futures contract and will offer them for sale to other investors. The investor believes the price will lower and will then return the shares to the lender. If the price rises the investor will make a loss.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.