The Short in a Nutshell
The simplest explanation of shorts you’ll read today.
4 min readJan 28, 2021
At its most basic essence, selling short is selling an IOU note. There are several variations on how a “short sale” works, but at the end of the transaction, here’s the situation:
- The short seller has cash.
- The short seller owes someone else one or more shares of a specific stock.