Short list is a very common term. In the context of job applications, when there are a lot of applicants, the crowd (you could call it the "long list") will be reduced to just the ones who are considered to be the most competitive or qualified. Those will be on the "short list" or "short listed." The final selection will be made from the short list.
The concept can be applied to any experience or transaction where there is a large pool of potential candidates/choices which are then narrowed down to the most desirable or suitable choices and then the final choice is made from that short list.
Further information on this topic can be found by googling "short list."
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