Short Sale
A sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.
The purpose of a short sale is to profit from an anticipated drop in the price of a security or commodity. Typically, an investor directs a broker to borrow a quantity of stocks and to sell them at the current price.
The Federal Reserve Board's Regulation T sets a Maintenance Margin, currently 50%, in purchases or short sales of securities. Margins may be put up in cash or eligible securities.
 See also: Information, Term, Will, Sale, Time
  
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