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TeachMeFinance.com - explain Short selling historic definition... Short selling -- In Wall Street this consists in selling stocks not owned and borrowing them for immediate delivery. When finally bought in (covered) the borrowed stocks are returned. If in the interval between selling and buying the stocks have declined the trade is profitable ; if there has been an advance it is unprofitable. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.