Skip to main content

What is shorting a stock?

Quick Answer

Shorting means borrowing shares from your broker, selling them at the current price, then buying them back later (hopefully cheaper) to return. Profit if the stock falls; theoretically unlimited losses if it rises.

what-is-shorting-a-stock
Warren Team
Updated December 29, 2025
33

Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

Get Expert Advice

Schedule your free consultation with our fiduciary advisors

Book Free Consultation