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A diminutive of the female given name Sarah, also used as a formal given name. quotations examples
She submitted―for what alternative did she have?―to being Sally in this family, but she always signed herself, Sarah.
1969, Doris Lessing, The Four-Gated City, Bantam Books, published 1970, page 114
Maybe her first name was Sally, but David thought he would have remembered a name like that; there were so few Sallys these days. Now the world belonged to Ambers, Ashleys, and Tiffanys.
2008, Stephen King, Just After Sunset, Simon and Schuster, published 2009, page 8
(British, slang) A nickname for the Salvation Army