Selling short
Selling shortIf an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy the stock back on the open market. For instance, you borrow 1000 shares of XYZ on July 1 and sell it for $8 per share. Then, on Aug 1, you purchase 1000 shares of XYZ at $7 per share. You've made $1000 (less commissions and other fees) by selling short.
Source: http://www.saint-claire.org/resources/Dictionary-of-Financial-and-Business-Terms.pdf
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Author of the text: R. de Paula Lico Júnior
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