GLOSSARY OF TERMS
The current economic crisis has brought these esoteric terms into mainstream conversation.
| TERMS | | Short Selling | | |
Short Selling is a technique used when potential sellers anticipate that a stock’s value is about to go down. They borrow these stocks from a broker and then sell them at the current high price in hopes of buying them back later at a lower price.
The SEC temporarily banned short-selling in nearly 1,000 financial companies, saying sharp declines in those stocks had eroded confidence in the companies. The order was set to expire on Wednesday, Oct. 8.
For current updates on this ban, see the SEC website athttp://www.sec.gov/news/press/2008/2008-235.htm.
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