SHORT SALE Definition

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SHORT SALE is the selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Such sales are made in anticipation of a decline in the price of the security to enable the seller to cover the sale with a purchase at a later date, at a lower price, and thus at a profit. Short sellers assume the risk that they will be able to buy the stock at a more favorable price than the price at which they sold short.

Learn new Accounting Terms

PERCENTAGE LEASE is a type of lease where the landlord charges a base rent plus an additional percentage of any profits realized by the business tenant.

FIXED ASSETS (NET) is all property, plant, leasehold improvements and equipment, net of accumulated depreciation or depletion.

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