# shorting

/ˈʃɔɹtɪŋ/ (US) · /ʃˈɔːtɪŋ/ (UK) · CEFR B2 · Verb

Source: https://englishreference.com/word/shorting
Updated: 2026-10-18

## Definition

to make electricity take a wrong path so a machine stops working. In finance, it also means to sell borrowed shares because you think the price will fall.

For teachers: to create an unintended low-resistance connection that diverts current and interrupts normal operation; in securities trading, to sell borrowed shares in expectation of repurchasing them at a lower price.

## Examples

- Faulty wiring is shorting the lights in the kitchen.
- The mechanic found water in the fuse box was shorting the car's ignition system.
- Hedge funds shorting the airline's stock accelerated its decline, as each wave of borrowed-share sales signaled deeper doubts about the company's survival.

## Usage notes

- The verb is transitive and takes a direct object; electrical use often appears as 'short out'.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.