short sale business definition
- The sale of a security that must be borrowed to make delivery. Short sales usually, but not always, entail the sale of securities that are not owned by the seller, who anticipates profiting from a decline in the price of the securities. Also called selling short, short. See also ghost stock, short against the box, short cover.
- The sale of real property when the outstanding mortgage exceeds proceeds from the sale. For example, a family buys a $250,000 home that is financed with a loan of equal amount (no money down). A year later the home is sold for $225,000 when the outstanding balance on the mortgage is $248,000. See also debt-discharge income.
Learn more about short sale