Business / Finance / Rebate: Negotiated return of a portion of the interest earned by the lender of stock to a short seller. When a stock is sold short, the seller borrows stock from an owner or custodian and delivers it to the buyer. The proceeds are delivered to the lender. The borrower, who is short, often wants a rebate of the interest earned on the proceeds under the lender's control, especially when the stock can be borrowed from many sources. Note: The seller must pay the lender any dividends paid out or, in the case of bonds, interest that accrues daily during the term of the loan.
Rebate Noun Synonyms: discount, reduction, deduction, allowance, mark-down, cut-back, refund, repayment, rake-off
Rebate Verb Synonyms: discount, reduce, deduct, mark down, refund, repay, kick back
Business / Real Estate / Rebate Law: Law that prohibits escrow and title insurance companies from giving rebates or favorable treatment as consideration for the referral of business. MORE
Business / Finance / Revenue Sharing: The percentage split between the general partner and limited partners of profits and losses resulting from the operation of the involved business. MORE