Shortfall risk

Shortfall risk

The risk of falling short of any investment target.

RELATED TERMS
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Risk
The possibility of loss; the amount that one may lose when investing.

Short
One who has sold a contract to establish a market position and who has not yet closed out this position through an offsetting purchase; the opposite of a long position.

Investment
The purchase of materials, machines, property, securities, etc. in order to produce income or profits.

Target
Target is a top United States corporation in the field of retailing, and its estimated market value is 45,270 million US dollars.

SIMILAR TERMS
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Shore Gold
Shore Gold is one of Canada's largest companies.

SHORE MEMORIAL Credit Union
SHORE MEMORIAL is a credit union with head office in NASSAWADOX, VA

SHORELINE Credit Union
SHORELINE is a credit union with head office in MUSKEGON, MI

Short
One who has sold a contract to establish a market position and who has not yet closed out this position through an offsetting purchase; the opposite of a long position.

Short against the box
A short sale of a stock is where the seller actually owns the stock, but does not want to close out the position.

Short bias
In the context of hedge funds, a style of management where part or all of the fund consists of short sales.

Short bonds
Bonds with short (not much time to maturity) current maturities.

Short coupon
A bond payment covering less than six-months' interest, because the original issue date is less than six months from the first scheduled interest payment.

Short covering
Used in the context of general equities. Actual purchase of securities by a short seller to replace those borrowed at the time of a short sale.

Short exempt
Used for listed equity securities. A special trading situation where a short sale is allowed on a minus tick. The owners of a convertible trading at parity can sell the equivalent amount of common short on a minus tick, assuming they have the firm intention to convert.

Short form registration
A procedure that allows a firm to condense its registration statement and prospectus by referencing financial data already on file with the SEC.

Short hedge
The sale of futures contracts to eliminate or lessen the possible decline in value of an approximately equal amount of the actual financial instrument or physical commodity.

Short interest
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.

Short interest theory
The theory that a large interest in short positions in stocks will precede a rise in the market prices, because the short positions must eventually be covered by purchases of the stock.

Short market value
The total value of all short sales in place in a customer's account at the end of the trading day.

Short position
Selling options or other financial instruments, including those one does not actually possess, expecting to buy them later at a lower price to cover the sale.

Short ratio (or short interest ratio)
Number of shares of a security that investors have sold short divided by average daily volume of the security (measured over 30 days or 90 days). There are various interpretations of this ratio.

Short run
The short period during which supply and demand are relatively fixed.

Short run operating activities
Events and decisions concerning the short-term finance of a firm, such as how much inventory to order and whether to offer cash terms or credit terms to customers.

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.

Short sale rule
An SEC rule requiring that short sales be made only in a market that is moving upward.

Short selling
Establishing a market position by selling a security one does not own in anticipation of the price of that security falling.

Short settlement
Trade settlement made prior to the standard five-day period due to customer request.

Short short test
A repealed IRS restriction, that used to limit profits from short-term trading, which three months, to 30% of gross income.

Short squeeze
When a lack of supply tends to force prices upward. In particular, when prices of a stock or commodity futures contracts start to move up sharply and many traders with short positions are forced to buy stocks or commodities in order to cover their positions and prevent (limit) losses.

Short straddle
A straddle involves both purchase and sale. In short straddle one put and one call are sold.

Short tender
Practice prohibited by SEC that involves the use of borrowed stock to respond to a tender offer.

Short-term
Any investments with a maturity of one year or less.

Short-term bond fund
A bond mutual fund holding short to intermediate-term bonds that have maturities of three to five years.

Short-term capital gain
A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income.

Short-term debt
Debt obligations, recorded as current liabilities, requiring payment within the year.

Short-term financial plan
A financial plan that covers the coming fiscal year.

Short-term financing
Involves debts which mature within a year.

Short-term gain (or loss)
A profit or loss realized from the sale of securities held for less than a year that is taxed at normal income tax rates if the net total is positive.

Short-term interest rates
Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commercial paper having maturities of less than one year.

Short-term investment services
Services that assist firms in making short-term investments.

Short-term reserves
Investments in interest bearing bank deposits, money market instruments, U.S. Treasury bills, and short-term bonds.

Short-term solvency ratios
Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including the current ratio, the acid test ratio, the inventory turnover ratio, and the accounts receivable turnover ratio.

Short-term tax exempts
Short-term securities issued by states, municipalities, and quesi-government entities such as local housing and urban renewal agencies.

Short-term trend
Erratic price movements that last less than three weeks.

Shortage cost
Costs that fall with increases in the level of investment in current assets.

PREVIOUS AND NEXT TERMS
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Short short test
A repealed IRS restriction, that used to limit profits from short-term trading, which three months, to 30% of gross income.

Short squeeze
When a lack of supply tends to force prices upward. In particular, when prices of a stock or commodity futures contracts start to move up sharply and many traders with short positions are forced to buy stocks or commodities in order to cover their positions and prevent (limit) losses.

Short straddle
A straddle involves both purchase and sale. In short straddle one put and one call are sold.

Short tender
Practice prohibited by SEC that involves the use of borrowed stock to respond to a tender offer.

Shortage cost
Costs that fall with increases in the level of investment in current assets.

Shortfall risk

Short-term
Any investments with a maturity of one year or less.

Short-term bond fund
A bond mutual fund holding short to intermediate-term bonds that have maturities of three to five years.

Short-term capital gain
A profit on the sale of a security or mutual fund share that has been held for one year or less. A short-term capital gain is taxed as ordinary income.

Short-term debt
Debt obligations, recorded as current liabilities, requiring payment within the year.

Short-term financial plan
A financial plan that covers the coming fiscal year.