Stock in a short sale, which the short seller takes on loan from his/her broker and then sells in the open market. The risk involved in such a strategy is that the price of the borrowed stock might rise in the market, and the short seller may have to buy the stock at a higher price than he/she had sold it, taking a loss on the trade.
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Definition of borrowed stock: Stock in a short sale, which the short seller takes on loan from his/her broker and then sells in the open market. The risk involved in ...
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- Securities lending - Wikipedia, the free encyclopedia
In finance, securities lending or stock lending refers to the lending of securities by one party to another. The terms of the loan will be governed by a "Securities ...
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and return the original borrowed stock to the brokerage firm and earn a profit. The act of repurchasing stock that has been borrowed and sold is called a ...
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What's the tenure of a borrowed stock? Stocks borrowed can be of any tenure up to 12 months. Each SLB transaction is marked with the month in which is due to ...
- SELLING SHORT - The Nebraska Council on Economic Education
hoping to buy it back at a lower price and return the original borrowed stock to the brokerage firm and earn a profit. The act of purchasing stock that has been ...
- Short Sales
Sep 6, 2011 ... If the borrowed stock pays a dividend, the short seller is responsible for paying the dividend to the person or firm making the loan. For further ...
- IRS reverses its position on closing a forward with borrowed stock ...
Apr 18, 2011 ... In Chief Counsel Advice 201104031 (the "CCA"), the IRS concluded that a variable prepaid forward contract settled with borrowed stock cannot ...