Sell Short

Business / Taxes / Sell Short: Selling short is a trading strategy that's designed to take advantage of an anticipated drop in a stock's market price. To sell short, you borrow shares through your broker, sell them, and use the money you receive from the sale as collateral on the loan until the stock price drops. If it does, you then buy back the shares at a lower price using the collateral, and return the borrowed shares to your broker plus interest and commission. If you realize a profit, it’s yours to keep. Suppose, for example, you sell short 100 shares of stock priced at $10 a share. When the price drops to $7.50, you buy 100 shares, return them back to your broker, and keep the $2.50-per-share profit minus commission. The risk is that if the share price rises instead of falls, you may have to buy back the shares at a higher price and suffer the loss. During the period of the short sale, the lender of the stock is no longer the registered owner because the stock was sold to the purchaser. If any dividends are paid during that period, or any other corporate actions occur, the short seller must make the lender whole by paying the amount that’s due. However, that income is taxed at the lender’s regular rate, not the lower rate that applies to qualifying dividend income.

Other Words for Sell

Sell Adjective Synonyms: vend, transfer, convey (title), trade, barter, exchange, dispose of
Sell Verb Synonyms: promote, push, put across or over
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Other Words for Short

Short Verb Synonyms: laconic, terse, succinct, pithy, sententious, epigrammatic
Short Noun Synonyms: small, little, slight, petite, diminutive, wee, tiny, elfin, minuscule, midget, dwarfish, squat, dumpy, runty, stubby, stunted, pint-sized, knee-high to a grasshopper, sawn-off
Short Adjective Synonyms: direct, straight, straightforward, short and sweet
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Short Interest Theory

Business / Finance / Short Interest Theory: Total number of shares of a security that investors have sold short and that have not been repurchased to close out the short position. Usually, investors sell short to profit from price declines. As MORE

Specialists Short-Sale Ratio

Business / Finance / Specialists Short-Sale Ratio: Chronological record maintained by a specialist that includes the specialist's own inventory of securities, market orders to sell short, and limit orders and stop orders that other stock exchange memb MORE

Short Tender

Business / Finance / Short Tender: A straddle involves both purchase and sale. In short straddle one put and one call are sold. MORE

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