Selling Short Against The Box: Selling short stock that is actually owned by the seller but held in the box, meaning it is held in safekeeping. The seller borrows securities needed to cover as the stock in the box may be inaccessible, or the seller may not wish to disclose ownership.

 

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Selling Short Against The Box: Selling short stock that is actually owned by the seller but held in the box, meaning it is held in safekeeping. The seller borrows securities needed to cover as the stock in the box may be . . . View Full Definition

Selling Short: Selling a stock not actually owned. If an investor thinks the price of a stock is going down, the investor could borrow the stock from a broker and sell it. Eventually, the investor must buy . . . View Full Definition

Selling On The Good News: A strategy of selling stock shortly after a company announces good news and the stock price rises. Investors believe that the price is as high as it can go and is on the brink of going down.

Selling The Spread: A spread whose option to be sold is trading at a higher premium than the option to be bought.

Separation Theorem: Theory that the value of an investment to an individual is not dependent on consumption preferences. That is, investors will want to accept or reject the same investment projects by using th . . . View Full Definition

Selling, General, And Administrative (SG and A) Expenses: Expenses such as salespersons' salaries and commissions, advertising and promotion, travel and entertainment, office payroll and expenses, and executives' salaries.

Selling Group: All banks involved in selling or marketing a new issue of stock or bonds.

Selling General and Administrative Expense (SG and A): The expenses involved in running a business.

Sell The Book: Used for listed equity securities. Order to a broker by the holder of a large quantity of shares of a security to sell all that can be absorbed at the current bid price. The term derives fro . . . View Full Definition

Sell Short: Selling short is a trading strategy that's designed to take advantage of an anticipated drop in a stock's market price. To sell short, you borrow shares through your broker, sell them, and u . . . View Full Definition