Editing Short (finance) (section)

==== Worked example of a loss-making short sale ====
Shares in ACME Inc. currently trade at $10 per share.

# A short seller borrows 100 shares of ACME Inc., and sells them for a total of $1,000.
# Subsequently, the price of the shares rises to $25 per share.
# Short seller is required to return the shares, and is compelled to buy 100 shares of ACME Inc. for $2,500.
# Short seller returns the shares to the lender, who accepts the return of the same number of shares as was lent.
# Short seller incurs as a loss the $1,500 difference between the price at which they sold the borrowed shares and the higher price at which the short seller had to purchase the equivalent shares (plus any borrowing fees).