Short Sale
Legal Definition and Related Resources of Short Sale
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Meanings, Synonyms, Etymology, Translations and More
Meaning of Short Sale
A term peculiar to the stock exchange and denotes a contract for sale of shares which the seller does not own, for future delivery at a time when such delivery must be made under the rules of the stock exchange. The broker must make a delivery of the stock, charging the price thereof to the customer and the account is carried until the customer orders the broker to repurchase the stock at which time an adjustment is made between the broker and the customer on the difference between the selling and purchasing price. See Brown v Carpenter, 182 App.Div. 650, 168 N.Y.S. 921.
Financial Definition of Short Sale
Selling a security that the seller does not own but is committed to repurchasing eventually. It is used to capitalize on an expected decline in the security's price.
Legal Definition of Short Sale
A transaction by a person who believes a security will decline and sells it, though the person does not own any. For instance: You instruct your broker to sell short 100 shares of XYZ. Your broker borrows the stock so delivery can be made to the buyer. The money value of the shares borrowed is deposited by your broker with the lender. Sooner or later you must cover your short sale by buying the same amount of stock you borrowed for return to the lender. If you are able to buy XYZ at a lower price...(more)
Related Entries of Short Sale in the Lawi Project
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Short Sale in Historical Law
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Legal Abbreviations and Acronyms
Search for legal acronyms and/or abbreviations containing Short Sale in the Legal Abbreviations and Acronyms Dictionary.
Related Legal Terms
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English Spanish Translation of Short sale
Venta corta (short sale)
Find other English to Spanish translations from the Pocket Spanish English Legal Dictionary (print and online), the English to Spanish to English dictionaries (like Short sale) and the Word reference legal translator.
Short Sale Definition (in the Accounting Vocabulary)
The New York State Society of Certified Public Accountants offers the following definition of Short Sale in a way that is easy for anybody to understand: Sale of an item before it is purchased. A person entering into a short sale believes the price of the item will decline between the date of the short sale and the date he or she must purchase the item to deliver the item under the terms of the short sale.
United States Tax Concept of Short Sale
The sale of securities, borrowed from a broker, to potentially profit from falling prices in a declining market. You do not actually own the securities yet. If the price of the securities drop you buy them and return them. Your profit is the difference between what you sold the securities for and what you bought them back for.
Concept of Short Sale in the context of Real Property
A short definition of Short Sale: A sale of property which includes some forgiveness of debt by the lender under a mortgage or trust deed. The amount of debt forgiven may be considered income to the seller and taxable.
Concept of Short Sale in the context of Real Property
A short definition of Short Sale: A sale of property which includes some forgiveness of debt by the lender under a mortgage or trust deed. The amount of debt forgiven may be considered income to the seller and taxable.