Short Sale

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Short Sale

A method of gaining profit from an anticipated decline in the price of a stock.

An individual who sells short sells either stock or Securities that he or she does not own and that are not immediately ready for delivery. Generally the seller borrows the shares needed to cover the sale from a Broker and then delivers these shares to the buyer. The seller deposits an amount that is equal to the value of the borrowed shares with the broker. This amount stays on deposit with the broker until the stock is returned. The seller must ultimately return the same number of shares of the same stock to the broker, and the transaction is not fully executed until the stock is returned. The broker lending the stock is entitled to all the benefits he or she would have received if the stock had not been lent. When a dividend is paid, then the seller-borrower is required to pay the broker-lender an amount equal to the dividend.

References in periodicals archive ?
The Seller did not pay any fees for the buyer to close this short sale and The Gonzales Team was able to save them from foreclosure.
The report noted that the percentage of suspicious short sales flipped for more than $50,000 has slightly decreased during the period of 2012 to second-quarter 2013.
Las Vegas Short Sale Agent Tania Michaels closes a Bank of America short sale and saves homeowner from repayment of mortgage balance.
At present, investors can only carry out intraday trading via the offsetting of margin trading and short sales under the credit trading system.
Short sales often are the best and quickest way to make sure that happens.
With the courts at a standstill and banks not foreclosing on properties," Halloran said, "the banks are getting better at doing short sales, so more people are doing them.
But according to Denver attorney Sara Mobley, who deals with many loan modifications and short sales, about eight out of nine short sales nationally fail because they don't meet the guidelines that the lender must adhere to.
Although many borrowers negotiate a short sale with their lenders before foreclosure proceedings have been filed, it is common for lenders to agree to short sales while foreclosure is pending.
Fort Lauderdale HAFA Short Sale is a 4 bedroom, 3 bath home with a 2 car garage with a water view of the New River and view of the Fort Lauderdale Marina.
A press release noted that the focus of the study was to quantify the potential losses associated with these suspicious short sales.
Web-Based Portal Leverages CSC's EarlyResolution Software, Enhances Loss Mitigation Oversight and Short Sale Transactions
However Summerlin short sales tend to take much longer than traditional Summerlin home sales, partly because there is much more paperwork and many more interested parties in Summerlin short sales compared to a traditional home sale.