Which investment is synonymous with "expected to fall in value" when initiating a short position?

When initiating a short position, the investor borrows shares and sells them with the expectation that the stock price will decline. This strategy hinges on the belief that the stock will "fall in value," allowing the investor to buy back the shares at a lower price to return them to the lender, thus profiting from the difference.

Shorted stock directly aligns with this strategy, as it explicitly involves selling borrowed stock under the anticipation of a price decrease. In contrast, long stock represents a position where an investor expects the stock's value to increase. Bought options typically grant the buyer the right to purchase an asset at a specific price in the future, and they do not inherently suggest a decline in value. Lastly, preferred shares refer to a type of equity security that generally pays fixed dividends and does not carry the implication of being shorted with expectations of decline. Therefore, shorted stock is the term most closely associated with the expectation of a decrease in value during a short position.