Short selling or "shorting" is the practice of selling a financial instrument that the seller borrows first (does not own), and then purchases it later to "cover the short". Short-sellers attempt to profit from an expected decline in the price of a security, such as a stock or a bond.

Naked short selling or "naked shorting" is the practice of selling a stock short, without first borrowing the shares or ensuring that the shares can be borrowed as is done in a conventional short sale.