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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 MatchesNet positionNet positionThe value of the position subtracting the initial cost of setting up the position. For example, if 100 options where purchased for $1 each and the option is currently trading for $9, the value of the net position is $900 - $100 = $800. Core propositionsCore propositionsThe core propositions of the HO Model are the factor price equalization theorem, the Heckscher-Ohlin Theorem, the Stolper-Samuelson Theorem, and the Rybczynski Theorem, according to Ethier (1974). Miller and Modiglianis irrelevance propositionMiller and Modiglianis irrelevance propositionTheory that if financial markets are perfect, corporate financial policy (including hedging policy) is irrelevant. Position 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. Take a positionTake a positionTo buy or sell short; that is to own or to owe some amount on an asset or derivative security. Further SuggestionsSynthetic forward positionForeign asset position Open position Open position Clear a position Long position in an option Welfare proposition Position sheet synthetic position position limit Covered position Long position Equilibrium position Heckscher-Ohlin Core Propositions Covered position Position trader Spread position Positioning Modigliani and Miller Proposition I Position limits long position Disposition of Real Estate Statement Position diagram Discretionary Proposition Net foreign asset position |
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