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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

borrowed stock  

Definition 1.

Stock in a short sale, which the short seller takes on loan from his/her broker and then sells in the open market. The risk involved in such a strategy is that the price of the borrowed stock might rise in the market, and the short seller may have to buy the stock at a higher price than he/she had sold it, taking a loss on the trade.
 
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