“Fiction: A vague and general term for an imaginative work, usually in prose. At any rate, it does not normally cover poetry and dram though both are a form of fiction in that they are molded and contrived—or feigned. Fiction is now used in general of the novel, the short story, the novella (qq.v) and related genres.”
Excerpted from: Cuddon, J.A. The Penguin Dictionary of Literary Terms and Literary Theory. New York: Penguin, 1992.