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SHORT
Secured short term financing

   • Short-term financing (loans) that has specific assets pledged as collateral.

Selling short

   • A bet by an investor that a stock will go down in price. The investor borrows the
   stock from a broker, sells it, and eventually buys it back on the market and returns
   the new shares to the broker. If the stock declines in price between the time the
   investor sells the shares and buys them back, a profit is realized.

   • 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 the stock back
   on the open market. For instance, you borrow 1000 shares of XYZ on July 1 and sell
   it for $8 per share. Then, on Aug 1, you purchase 1000 shares of XYZ at $7 per
   share. You've made $1000 (less commissions and other fees) by selling short.

Short
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   • A market participant assumes a short position by selling as security he does not
   own. The seller makes delivery by borrowing the security sold or reversing it in.

   • The term used to describe the selling of a security, contract, or commodity not
   owned by the seller. For example, an investor who borrows shares of stock from a
   broker-dealer and sells them on the open market is said to have a short position in
   the stock. See also: Long.

   • Is the position opposite that of a long. Some who is short the market.

   • One who has sold a contract to establish a market position and who has not yet




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   closed out this position through an offsetting purchase; the opposite of a long
   position. Related: Long.

Short bonds

   • Bonds with a short current maturity.

   • Bonds with short current maturities.

Short book

   • See unmatched book.

   • See: unmatched book.

Short coupon

   • Bonds or notes with a short current maturity.

   • Refers to the initial coupon for a municipal security which reflects less than 6
   months of accrued interest. The time of accrual is measure from the start of the
   Dated Date and continues until the end of the initial accrual period. Compare to Long
   Coupon.

Short dated bonds

   • Long-term government bonds that are approaching maturity.
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Short form prospectus

   • The document filed for the prompt offering prospectus (POP) system that omits
   much of the information that is in a regular prospectus. This document contains
   information regarding the proposed new public offering and is intended, together
   with the annual information form (AIF) to disclose all information normally expected
   in a full prospectus.

Short hedge

   • Sale of a futures contract to hedge, for example, a position in cash securities or an




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   anticipated borrowing need.

   • Refers to the status of the open futures contract equivalent position. Here, it is
   understood that the hedger is short futures against a long actual position.

   • The sale of a futures contract(s) to eliminate or lessen the possible decline in value
   ownership of an approximately equal amount of the actual financial instrument or
   physical commodity. Related: Long hedge.

Short interest

   • The total number of shares of a security that have been sold short by customers
   and securities firms. See also: Short Selling.

   • This is the total number of shares of a security that investors have borrowed, then
   sold in the hope that the security will fall in value. An investor then buys back the
   shares and pockets the difference as profit.

Short option minimum charge

   • Is the amount charged for short positions in extremely deep-out-of-the-money
   options. This amount is the greater of the actual risk weighted statistic or the stated
   exchange or clearing house minimum.

Short position
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   • Refers to several concepts. It can refer to market directional positions. For
   example, the sale of a call or the purchase of a put are bearish in nature. These
   trades have a negative market bias. Short position can also refer to the actual short
   sale of a derivative. Here, a short sale of a put is viewed as bullish or market
   directional positive but categorized by the short sale event.

   • Occurs 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 to close out the transaction. This technique is used when an




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   investor believes the stock price will go down.

Short run operating activities

   • Events and decisions concerning the short-term finance of a firm, such as how
   much inventory to order and whether to offer cash terms or credit terms to
   customers.

Short sale

   • The sale of securities not owned by the seller in the expectation that the price of
   these securities will fall or as part of an arbitrage. A short sale must eventually be
   covered by a purchase of the securities sold. Short seller borrow the asset (not
   owned), sells it and the later purchases the asset (hopefully at a lower price) and
   returns to the original party that the asset was borrowed from. One would do a short
   sale if you expect the price of the asset to fall and you do not own the asset to begin
   with.

   • 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.

Short selling

   • Short selling is the selling of a security that the seller does not own, or any sale that
   is completed by the delivery of a security borrowed by the seller. Short selling is a
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   legitimate trading strategy. Short sellers assume the risk that they will be able to buy
   the stock at a more favorable price than the price at which they sold short.

   • Is the act by which a speculator or risk manager sells an instrument at a high price
   with the intent of purchasing it lower. This is particularly the case for the speculator.
   The risk manager would generally be selling short against a specific or global
   exposure. There are technical differences in selling short on the futures and
   securities markets. Also, the purchase of puts or other derivative strategies can
   serve as a substitute for being short. There are different rules which apply to short




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   sellers on securities markets. The key differences are between market makers and
   market participants.

   • Establishing a market position by selling a security one does not own in anticipation
   of the price of that security falling.

Short squeeze

   • A situation in which a lack of supply tends to force prices upward.

Short straddle

   • A straddle in which one put and one call are sold.

Short term debt

   • All debt due in the next 12 months. This figure is found on the Balance Sheet under
   current liabilities. See also: Long-Term Debt.

Short term financial management

   • Management of current assets and current liabilities.

Short term financial plan

   • A financial plan that covers the coming fiscal year.

Short term investment services

   • Services that assist firms in making short-term investments.
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Short term operating financial plans

   • Planned short-term financial actions and the anticipated financial impact of those
   actions.

Short term self liquidating loan

   • An unsecured short-term loan in which the use to which the borrowed money is put
   provides the mechanism through which the loan is repaid.

Short term solvency ratios




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   • Ratios used to judge the adequacy of liquid assets for meeting short-term
   obligations as they come due, including (1) the current ratio, (2) the acid-test ratio,
   (3) the inventory turnover ratio, and (4) the accounts receivable turnover ratio.

Short term tax exempts

   • Short-term securities issued by states, municipalities, local housing agencies, and
   urban renewal agencies.

Short the basis

   • Refers to the status of the open cash or spot market position. Here, the hedger
   would be short the cash market and long the futures or forward market. Compare to
   Long the Basis.

Short the board

   • Sell GNMA or T-bond futures on the CBT.

Shortage cost

   • Costs that fall with increases in the level of investment in current assets.

Shortening

   • Is the reduction of the held duration for assets or liabilities. It can be intentional or
   the result of prepayments, events, or exercised options.
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Shortfall risk

   • The risk of falling short of any investment target.

Synthetic short call

   • Is a short position in the underlying instrument or futures combined with a short put
   position.

Synthetic short put

   • Is a long position in the underlying combined with a short call. Is sometimes




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   referred to as a covered call write position.

Synthetic short straddle

   • Is constructed by the purchase of a futures contract or underlying instrument
   coupled with the sale of two at-the-money calls. Since the purchase of the
   underlying with the sale of one at-the-money call is a synthetic short put, then the
   sale of the second call completes this synthetic option strategy. This synthetic short
   straddle position can also be constructed by the short sale of the futures or
   underlying coupled with the sale of two at-the-money puts. Here, the short sale of
   the underlying and the short sale of the put create a synthetic short call position. The
   sale of the second put completes this synthetic option strategy. Note that in both
   cases, the trader is collecting a premium or receiving time value which makes the
   position synthetically short.

Unsecured short term financing

   • Short-term financing obtained without pledging specific assets as collateral.

				
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