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Short position |
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Short positionOccurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought back to close out the transaction. This technique is used when an investor believes the stock price will drop.Short position Similar MatchesPosition buildingPosition buildingBuying shares to build up a long position or selling shares to create a short position in a particular security or group of securities. Net foreign asset positionNet foreign asset positionThe value of the assets that a country owns abroad, minus the value of the domestic assets owned by foreigners. Equals balance of indebtedness. Covered positionCovered positionUse of an option in a trading strategy in the underlying asset is already owned. Equilibrium positionEquilibrium positionSame as equilibrium level, though perhaps of several variables at once, perhaps as displayed in a graph. Modigliani and Miller Proposition IModigliani and Miller Proposition IA proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition. Further Suggestionsposition limitOpen position Foreign asset position Position limits Position Spread position Position trader Clear a position long position Position diagram Discretionary Proposition Long position in an option Synthetic forward position Disposition of Real Estate Statement Welfare proposition Interpositioning Covered position Open position Heckscher-Ohlin Core Propositions synthetic position Core propositions Net position Position sheet Take a position Long position |
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