Short Sales definition: Copy, customize, and use instantly
Introduction
The term "Short Sales" refers to the sale of a security that the seller does not own, typically borrowing it from another party to complete the transaction. In contracts, it is important to define short sales to clarify the risks, obligations, and conditions under which they can be executed.
Below are various examples of how "Short Sales" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Short Sales" as a trading strategy
This definition ties "Short Sales" to its use as a trading strategy.
"Short Sales" means the sale of securities that the seller does not own, with the intention of repurchasing them at a lower price to profit from the price difference.
Definition of "Short Sales" as a borrowing transaction
This definition connects "Short Sales" to borrowing securities.
"Short Sales" refers to the act of borrowing securities from another party to sell them, with the commitment to return the borrowed securities at a later date.
Definition of "Short Sales" as a market strategy
This definition links "Short Sales" to a market strategy for profiting from declining prices.
"Short Sales" means a strategy where an investor sells a security in anticipation of a price drop, with the aim of repurchasing it at a lower price to realize a profit.
Definition of "Short Sales" as a contract provision
This definition ties "Short Sales" to a contract provision regulating the practice.
"Short Sales" refers to the sale of securities not owned by the seller, typically subject to terms specified in the contract regarding timing, borrowings, and obligations to repurchase.
Definition of "Short Sales" as a trading risk
This definition connects "Short Sales" to the risk involved in the practice.
"Short Sales" means the sale of securities not owned by the seller, involving the risk of price fluctuations that could result in a loss greater than the initial sale price.
Definition of "Short Sales" as an allowable transaction
This definition links "Short Sales" to allowable transactions in a contract.
"Short Sales" refers to sales of securities that are not owned by the seller, permitted by the contract under specific conditions such as margin requirements and the availability of borrowed securities.
Definition of "Short Sales" as an obligation
This definition ties "Short Sales" to an obligation for the seller.
"Short Sales" means the seller’s obligation to return the securities borrowed for the short sale, which must be repurchased and delivered within a specified period.
Definition of "Short Sales" as a financial strategy
This definition connects "Short Sales" to a financial strategy.
"Short Sales" refers to a financial strategy used to profit from a decline in the price of an asset, involving the sale of borrowed securities.
Definition of "Short Sales" as a risk management tool
This definition links "Short Sales" to a risk management tool.
"Short Sales" means a risk management technique used by investors to hedge against potential losses from rising asset prices, involving the sale of borrowed securities.
Definition of "Short Sales" as a speculative activity
This definition ties "Short Sales" to speculation.
"Short Sales" refers to the act of selling borrowed securities with the expectation that their price will fall, allowing for their repurchase at a lower price to realize a profit.
Definition of "Short Sales" as an investment practice
This definition connects "Short Sales" to an investment practice.
"Short Sales" means an investment practice where an investor borrows securities to sell them, hoping to repurchase them later at a reduced price.
Definition of "Short Sales" as a regulatory condition
This definition links "Short Sales" to regulatory conditions.
"Short Sales" refers to the sale of securities without ownership, typically governed by regulatory conditions such as margin requirements, reporting obligations, and restrictions on the short sale of certain securities.
Definition of "Short Sales" as an agreement condition
This definition ties "Short Sales" to an agreement condition.
"Short Sales" refers to sales of borrowed securities, which are only allowed under the terms of the agreement that govern the borrowings and repayment conditions.
Definition of "Short Sales" as a margin trading activity
This definition connects "Short Sales" to margin trading.
"Short Sales" means the practice of borrowing securities from a broker to sell them, typically conducted in margin accounts with specific lending terms and requirements.
Definition of "Short Sales" as an investor obligation
This definition links "Short Sales" to investor obligations.
"Short Sales" refers to the investor’s obligation to repurchase securities they have borrowed and sold, to return them to the lender within a specified timeframe.
Definition of "Short Sales" as a speculative trade
This definition ties "Short Sales" to speculative trades.
"Short Sales" means a speculative trade where the seller bets on the price of a security declining, selling it without owning it and planning to repurchase it at a lower price.
Definition of "Short Sales" as a strategic move
This definition connects "Short Sales" to strategic financial moves.
"Short Sales" refers to a strategic move used by investors or traders to profit from anticipated declines in asset prices, involving the borrowing and selling of securities.
Definition of "Short Sales" as a liquidity provision strategy
This definition links "Short Sales" to liquidity provision.
"Short Sales" means the act of providing liquidity to the market by selling borrowed securities, with the expectation that prices will decline.
Definition of "Short Sales" as an asset disposal method
This definition ties "Short Sales" to asset disposal.
"Short Sales" refers to a method of disposing of securities that the seller does not own, by borrowing the securities and selling them with the intention of repurchasing them at a later date.
Definition of "Short Sales" as a loan-backed transaction
This definition connects "Short Sales" to a loan-backed transaction.
"Short Sales" refers to a transaction in which securities are borrowed from a lender and sold by the borrower, with the obligation to return the securities after the sale.
Definition of "Short Sales" as an equity sale strategy
This definition links "Short Sales" to equity sale strategies.
"Short Sales" means a strategy employed by investors where they sell equity securities that they have borrowed, expecting the market price to decrease.
Definition of "Short Sales" as a leveraged trading strategy
This definition ties "Short Sales" to leveraged trading.
"Short Sales" refers to a leveraged trading strategy that involves borrowing securities to sell them in the market, with the aim of buying them back at a lower price.
Definition of "Short Sales" as a price decline expectation
This definition connects "Short Sales" to expectations of price declines.
"Short Sales" refers to the sale of securities not owned by the seller, based on the expectation that the market price will decrease, allowing for the repurchase of securities at a profit.
Definition of "Short Sales" as a restricted activity
This definition links "Short Sales" to restricted activity.
"Short Sales" means a restricted activity, where sales of securities are conducted under specific rules and regulations, often involving borrowings and margin requirements.
Definition of "Short Sales" as a capital markets practice
This definition ties "Short Sales" to capital markets practices.
"Short Sales" refers to a practice in capital markets where securities are borrowed and sold, with the intention to buy them back at a lower price to return to the lender.
Definition of "Short Sales" as a transaction involving borrowed securities
This definition connects "Short Sales" to transactions involving borrowed securities.
"Short Sales" means a transaction in which an investor borrows securities, sells them, and agrees to repurchase them later, usually when the price has declined.
Definition of "Short Sales" as a counterposition strategy
This definition links "Short Sales" to a counterposition strategy.
"Short Sales" refers to a counterposition strategy, where an investor sells securities they do not own in anticipation that the value of the security will decrease.
Definition of "Short Sales" as a margin-based activity
This definition ties "Short Sales" to margin-based activities.
"Short Sales" refers to the sale of securities under a margin agreement, where the seller borrows the securities to sell and later repurchases them to close the position.
Definition of "Short Sales" as an asset-based sale
This definition connects "Short Sales" to an asset-based sale.
"Short Sales" means the sale of assets that are not owned by the seller but are borrowed for the transaction, with the commitment to return them at a later date.
Definition of "Short Sales" as a financial market technique
This definition links "Short Sales" to a financial market technique.
"Short Sales" refers to a financial market technique in which an investor borrows securities to sell them in the market, with the goal of buying them back at a lower price to make a profit.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.