Meaning of “short sale” in the English Dictionary

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"short sale" in Business English

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short salenoun [ C ]

uk us

STOCK MARKET an occasion when someone sells shares that they have borrowed hoping that their price will fall before they have to replace them so that they make a profit:

The Fund may make short sales in an attempt to protect against market declines.

PROPERTY an occasion when a house is sold for less than the value of its mortgage:

A homeowner involved in a short sale will see an 80- to 100-point drop on his or her credit score.

(Definition of “short sale” from the Cambridge Business English Dictionary © Cambridge University Press)