What is Short Selling? | SIE, SERIES7 Exam Prep
Jan 1, 2026
Short selling is an investment strategy where an investor borrows shares to sell immediately, hoping to buy them back later at a lower price and profit from the decline.
š Learn more about Short Selling and other key terms for your SIE, SERIES7 exam at Open Exam Prep.
šÆ This term appears on: SIE, SERIES7
š Full glossary: https://www.open-exam-prep.com/glossary
š Short Selling definition: https://www.open-exam-prep.com/glossary/short-selling
š” Exam Tip: Short selling = UNLIMITED loss potential (stock can rise forever). Must use margin account.
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