Wikipedia defines short-selling as “the practice of selling assets that have not been purchased beforehand, but which the seller may have borrowed from a third party with the intention of buying identical assets back at a later date to return to that third party.”
Here’s another definition:
That’s muuuuuch better. The image is one of five posters that staffers at Planet Money, NPR’s excellent global economics show, designed to give simple visual form to woolly financial ideas, from inflation and austerity to short-selling and naked short-selling (just short-selling with nips).
The tone here–like Planet Money itself–is both playful and dead serious. Take this poster, which portrays austerity as a giant butcher knife:
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