Definitions for short sale
short sale

Princeton's WordNetRate this definition:0.0 / 0 votes

1. short sale, short sellingnoun

   sale of securities or commodity futures not owned by the seller (who hopes to buy them back later at a lower price)

WiktionaryRate this definition:0.0 / 0 votes

1. short salenoun

   A property sale negotiated with a mortgage company in which a lender takes less than the total amount due.

2. short salenoun

   A sale of a security that one does not own, delivery obligation met by borrowing the security from another owner.

3. short salenoun

   A sale of a financial security, commodity, or other good that one does not own with the contractual obligation to make delivery of the good to the buyer at a date in the future.

WikipediaRate this definition:0.0 / 0 votes

1. short sale

   In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the asset rises. There are a number of ways of achieving a short position. The most fundamental method is "physical" selling short or short-selling, which involves borrowing assets (often securities such as shares or bonds) and selling them. The investor will later purchase the same number of the same type of securities in order to return them to the lender. If the price has fallen in the meantime, the investor will have made a profit equal to the difference. Conversely, if the price has risen then the investor will bear a loss. The short seller must usually pay a fee to borrow the securities (charged at a particular rate over time, similar to an interest payment), and reimburse the lender for any cash returns such as dividends that were due during the period of lease. Short positions can also be achieved through futures, forwards or options, where the investor can assume an obligation or a right to sell an asset at a future date at a price that is fixed at the time the contract is created. If the price of the asset falls below the agreed price, then the asset can be bought at the lower price before immediately being sold at the higher price specified in the forward or option contract. A short position can also be achieved through certain types of swap, such as contracts for differences. These are agreements between two parties to pay each other the difference if the price of an asset rises or falls, under which the party that will benefit if the price falls will have a short position. Because a short seller can incur a liability to the lender if the price rises, and because a short sale is normally done through a broker, a short seller is typically required to post margin to its broker as collateral to ensure that any such liabilities can be met, and to post additional margin if losses begin to accrue. For analogous reasons, short positions in derivatives also usually involve the posting of margin with the counterparty. Any failure to post margin promptly would prompt the broker or counterparty to close the position. Short selling is an especially systematic and common practice in public securities, futures or currency markets that are fungible and reasonably liquid. A short sale may have a variety of objectives. Speculators may sell short hoping to realize a profit on an instrument that appears overvalued, just as long investors or speculators hope to profit from a rise in the price of an instrument that appears undervalued. Alternatively, traders or fund managers may use offsetting short positions to hedge certain risks that exist in a long position or a portfolio. Research indicates that banning short selling is ineffective and has negative effects on markets. Nevertheless, short selling is subject to criticism and periodically faces hostility from society and policymakers.

ChatGPTRate this definition:0.0 / 0 votes

1. short sale

   A short sale is a financial 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 investor profits if the price of the securities falls, as they can buy them back at a lower price than they sold them for. It typically occurs with stocks but can happen with other types of assets as well.

WikidataRate this definition:0.0 / 0 votes

1. Short sale

   A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens' full amounts, and whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties. However, in California, legislation was passed to preclude deficiencies after a short sale is approved. The same is true of lenders on first loans and lenders on second loans — once the short sale is approved, no deficiencies are permitted after the short sale.. A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. Both often result in a negative credit report against the property owner. There have been 2.2 million short sales in the United States during the Subprime mortgage crisis..

Matched Categories

1. • Trading

How to pronounce short sale?

1. Alex

   US English

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   British

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How to say short sale in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of short sale in Chaldean Numerology is: 6

2. Pythagorean Numerology

   The numerical value of short sale in Pythagorean Numerology is: 9

References

1. ^ Princeton's WordNet
   http://wordnetweb.princeton.edu/perl/webwn?s=short sale
2. ^ Wiktionary
   https://en.wiktionary.org/wiki/Short_Sale
3. ^ Wikipedia
   https://en.wikipedia.org/wiki/Short_Sale
4. ^ ChatGPT
   https://chat.openai.com
5. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=short sale