Short sale - Financial definition
Financial acronyms
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Concise definition of the term short sale
A technique used to take advantage of an anticipated decline in the price of a security or to hedge a position. In a short sale, the investor borrows the security in the market and immediately sells it. Then, if the investor guessed right (or if the hedge was indeed needed) and the price of the security declines, he can replace the borrowed securities by buying them at the cheaper price.