# Short-selling fund (also referred to in German)

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- Post ID: 589045
- Modified: 2023-07-25T21:12:29+00:00
- Language: en

## Definition

A hedge fund that, in its estimation, borrows overvalued stocks - for a fixed period of time and sells them - immediately on the market. The fund managers count on being able to buy back the shares cheaper at a later date and then close out their account with the lender (broker). - The funds generated from the sale of the shares are usually invested in other assets, which then serve primarily as collateral for the repurchase of the shares. - A short seller suffers a loss if he is wrong in his assumptions and the borrowed shares increase in value. He then has to buy back these securities at a now higher price. - See hedge fund strategies, index arbitrage, short selling, risk, short position, single hedge fund, value fund, zombie bank. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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