Short Sale
The sale of a security that the seller does not own. This is a highly speculative form of trading where the seller believes that the price of a security is going to fall and they will be able to cover the sale by buying back the security at a lower price. The profit would, therefore, be the difference between the initial selling price and the subsequent purchase price. It is an illegal practice not to declare the trade a short sale when the order is placed.
Sponsored Links