Short Sale

Description and Definition of Short Sale

The sale of securities, borrowed from a broker, to potentially profit from falling prices in a declining market. You do not actually own the securities yet. If the price of the securities drop you buy them and return them. Your profit is the difference between what you sold the securities for and what you bought them back for.

Resources

See Also

Further Reading

• Short Sale in the West's Tax Law Dictionary
• Short Sale in “A Dictionary of Taxation”