Short. One

who has sold a stock which he does not po e and has borrowed the stock for delivery to the buyer is short of that stock. One who is short of several stocks is said to be short of the market. One who is short is a bear.; The object of selling short is, of course, to repurchase subsequently at a lower figure. The rules of the New York Stock Exchange enforce the completion of each transaction entered into “regular way” on the day following the transaction. Hence, the speculator who has sold short is forced to borrow the stock he has sold but does not own and make actual delivery of it next day to the purchaser. This he accomplishes through his broker by paying the market value of the stock to the one from whom he borrowed it and then returning the borrowed stock to the lender when he has covered, or in other words, bought back the stock. For additional information see Borrowing and lending stocks.: When a speculator is short of stock (has sold stock which he did not own) on which a dividend becomes due he has to pay the amount of the dividend to the person from whom he borrowed the stock to make delivery to the one to whom he sold ~ stock.: In speculation in grain, cotton, coffee and other commodities contracts to receive and deliver the property are entered into the same as in stocks. On the London Stock Exchange it is the custom to say that a speculator is bear of stocks instead of short of stocks. 479