short sale

short sale
The sale of security that is not owned by the seller. The seller borrows the security, sells it, and then buys it at a later date to return it to the lender. The purpose of a short sale is to attempt to profit from the fall in the price of a security. Short sales are considered trading activities. For banks, when the security that is sold is "borrowed" from the seller's investment portfolio, the transaction is not considered a short sale; it must be treated as an outright sale of the underlying security. American Banker Glossary
————
Selling a security that the seller does not own but is committed to repurchasing eventually. It is used to capitalize on an expected decline in the security's price. Bloomberg Financial Dictionary
————
The sale of a security or commodities futures not owned by the seller at the time of the trade. Short sales are usually made in anticipation of a decline in the price. Exchange Handbook Glossary

* * *

short sale short sale ➔ sale

* * *

short sale UK US noun [C]
► STOCK MARKET an occasion when someone sells shares that they have borrowed hoping that their price will fall before they have to replace them so that they make a profit: »

The Fund may make short sales in an attempt to protect against market declines.

► PROPERTY an occasion when a house is sold for less than the value of its mortgage: »

A homeowner involved in a short sale will see an 80- to 100-point drop on his or her credit score.


Financial and business terms. 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • short sale — A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Short sales usually occur when the homeowner is facing foreclosure. Many lenders will agree to accept the proceeds of a short sale and forgive the… …   Law dictionary

  • short sale — ☆ short sale n. a sale of securities or commodities which the seller does not yet have but expects to cover later at a lower price …   English World dictionary

  • Short Sale — A market transaction in which an investor sells borrowed securities in anticipation of a price decline and is required to return an equal number of shares at some point in the future. The payoff to selling short is the opposite of a long position …   Investment dictionary

  • Short sale — Selling a security that the seller does not own but is committed to repurchasing eventually. It is used to capitalize on an expected decline in the security s price. The New York Times Financial Glossary * * * short sale short sale ➔ sale * * *… …   Financial and business terms

  • short sale — noun sale of securities or commodity futures not owned by the seller (who hopes to buy them back later at a lower price) • Syn: ↑short selling • Hypernyms: ↑trading * * * an act or instance of selling short. [1865 70] * * * short sale noun A sale …   Useful english dictionary

  • Short Sale — Unter Leerverkauf (auch: Blankoverkauf, Short Sale) versteht man den Verkauf einer Ware, eines Währungsbetrages oder eines Wertpapiers, das der Verkäufer zum Verkaufszeitpunkt noch nicht besitzt. Der Verkäufer profitiert von dem Leerverkauf, wenn …   Deutsch Wikipedia

  • short sale — A contract for sale of shares of stock which the seller does not own, or certificates for which are not within his control, so as to be available for delivery at the time when, under rules of the exchange, delivery must be made. Provost v. U. S …   Black's law dictionary

  • Short sale — A short sale can refer to various kinds of transactions: *Short (finance) the seller does not own a security that he sells *Short sale (real estate) the lender allows a property to be sold for less than the amount owed on a mortgage and takes a… …   Wikipedia

  • short sale — A sale of that, usually corporate stock, which the seller does not at the time possess, but which, by the future date or time agreed upon for its delivery to the purchaser under the terms of the contract, the seller must in some way acquire for… …   Ballentine's law dictionary

  • short sale of securities — A short sale of securities is where the seller does not own the securities at the time of selling them, so is required to acquire them between the date of the bargain and the delivery date. A consequence of short selling can be that the dealer… …   Law dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”