Short Selling

An order to sell stock which the seller does not own, by means of a loan of the stock through BMO InvestorLine. This is a speculative practice done in the belief that the price of a stock is going to fall and the seller will then be able to cover the sale by buying the security back at a lower price. The profit would be the difference between the initial selling price and the subsequent purchase price. Short selling is only available for margin accounts and you must be approved for Short Sales before you can place this type of order with us.