Financial Dictionary

This dictionary contains:
24549
financial terms

Selling short




Selling short

Selling a stock not actually owned. If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it.

RELATED TERMS
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Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.

Investor
Investor is a top Swedish corporation in the field of diversified financials, and its estimated market value is 10,680 million US dollars.

Price
The cost of a good or service to the consumer.

Borrow
Is the term which indicates a credit relationship. In securities it can refer to borrowing funds or borrowing securities.



SIMILAR TERMS
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Sell limit order
Conditional trading order that indicates that a security may be sold at the designated price or higher.

Sell off
Sale of securities under pressure.

Sell order
An order that may take many different forms by an investor to a broker to sell a particular stock, bond, option, future, mutual fund, or other holding.

Sell out
Liquidation of a margin account after a customer has failed to bring an account to a required level by producing additional equity after a margin call.

Sell plus order
Market or limit order to sell a stated amount of stock provided that the price to be obtained is not lower than the last sale.

Sell side analyst
A financial analyst who works for a brokerage firm and whose recommendations are passed on to the brokerage firm's customers.

Sell the book
Used for listed equity securities. Order to a broker by the holder of a large quantity of shares of a security to sell all that can be absorbed at the current bid price.

Sell to close
A phrase used by many brokerages on the street to represent the closing of a long position in option transactions.

Sell to open
A phrase used by many brokerages on the street to represent the opening of a short position in option transactions.

Seller financing
Funding a purchase by a seller's loan to the buyer, the buyer takes full title to the property when the loan is fully repaid.

Seller's call
An agreement between a buyer and a seller for a specific grade and quantity of commodity that allows a period of time for the seller to set the price a fixed number of points above (or below) a specified delivery month's futures price.

Seller's market
Market in which demand exceeds supply. As a result, the seller can dictate the price and the terms of sale.

Seller's option
Delayed settlement-delivery in a transaction.

Seller's points
In reference to a loan, seller's points consist of a lump sum paid by the seller to the buyer's creditor to reduce the cost of the loan to the buyer. This payment is either required by the creditor or volunteered by the seller, usually in a loan to buy real estate.

Selling away
When a broker solicits you to purchase securities not held or offered by the brokerage firm.

Selling climax
A sudden drop in security prices as sellers dump their holdings.

Selling concession
The discount underwriters offer the selling group on securities in a new issue.

Selling dividends
Inducing a prospective customer to buy shares in order to profit from a dividend scheduled in the near future.

Selling group
All banks involved in selling or marketing a new issue of stock or bonds.

Selling hedge
A hedging strategy with which the sale of futures contracts are meant to offset a long underlying commodity position. Also known as a "short hedge."

Selling into strength
A proactive trading strategy carried out by selling out of a long or into a short position when the price of the asset being traded is still rising but is expected to reverse in price.

Selling on the good news
A strategy of selling stock shortly after a company announces good news and the stock price rises. Investors believe that the price is as high as it can go and is on the brink of going down.

Selling price
Total cost (unit cost plus overheads and "risk reward") plus profit.

Selling short against the box
Selling short stock that is actually owned by the seller but held in the box, meaning it is held in safekeeping. The seller borrows securities needed to cover as the stockin the box may be inaccessible, or the seller may not wish to disclose ownership.

Selling syndicate
A group of underwriters that issues a firm's securities by buying them from the issuing firm and reselling them to a group of smaller brokerage firms for eventual sale to individual investors.

Selling the spread
A spread whose option to be sold is trading at a higher premium than the option to be bought.

Selling, general, and administrative (SG&A) expenses
Expenses such as salespersons' salaries and commissions, advertising and promotion, travel and entertainment, office payroll and expenses, and executives' salaries.



PREVIOUS AND NEXT TERMS
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Selling group
All banks involved in selling or marketing a new issue of stock or bonds.

Selling hedge
A hedging strategy with which the sale of futures contracts are meant to offset a long underlying commodity position. Also known as a "short hedge."

Selling into strength
A proactive trading strategy carried out by selling out of a long or into a short position when the price of the asset being traded is still rising but is expected to reverse in price.

Selling on the good news
A strategy of selling stock shortly after a company announces good news and the stock price rises. Investors believe that the price is as high as it can go and is on the brink of going down.

Selling price
Total cost (unit cost plus overheads and "risk reward") plus profit.

Selling short

Selling short against the box
Selling short stock that is actually owned by the seller but held in the box, meaning it is held in safekeeping. The seller borrows securities needed to cover as the stockin the box may be inaccessible, or the seller may not wish to disclose ownership.

Selling syndicate
A group of underwriters that issues a firm's securities by buying them from the issuing firm and reselling them to a group of smaller brokerage firms for eventual sale to individual investors.

Selling the spread
A spread whose option to be sold is trading at a higher premium than the option to be bought.

Selling, general, and administrative (SG&A) expenses
Expenses such as salespersons' salaries and commissions, advertising and promotion, travel and entertainment, office payroll and expenses, and executives' salaries.

Semistrong form efficiency
A form of pricing efficiency that profits the price of a security fully reflects all public information (including, but not limited to, historical price and trading patterns).

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This dictionary contains 24549 terms.







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