What is short selling? It is a process of selling a stock through a broker or dealer that purchases the stock for less than you paid. The reason that you are selling your stock for less than you paid is because the price of the stock has dropped to less than what you paid. What is short selling to a broker is that they make a profit by buying the stock at this price and then selling it to you for a higher price. You do not actually get a "short" trade, but instead you are buying stock from another company at a price that is a bit more than you paid.