short sale of securities

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 sells the securities cum-div (with dividend) but buys them ex-div (without dividend), leaving the right to the next dividend with the seller.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • 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 — sale of securities that do not belong to a seller (with the intention of buying them back after the price goes down) …   English contemporary 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 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 — 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 Rule — A Securities and Exchange Commission (SEC) trading regulation that restricted short sales of stock from being placed on a downtick in the market price of the shares. Short sales could only be permitted on upticks (last trade higher than the one… …   Investment dictionary

  • 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 against the box — A short sale where the investor owns enough shares of the security involved to cover the borrowed securities, if necessary. The box referred to is the hypothetical safe deposit box in which the certificates are kept. A short sale against the box… …   Black's law dictionary

  • short selling — The practice of selling securities not owned by the seller in the hope that the price subsequently falls and they can then be bought back at a lower price. The seller may have borrowed the necessary securities on a temporary basis in order to… …   Law dictionary

  • short — 1 adj 1: treated or disposed of quickly in court the calendar for short causes 2 a: not having goods or property that one has sold in anticipation of a fall in prices a seller who was short at the time of the sale b: consisting of or relating to… …   Law dictionary

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