# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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.

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