Short Sale

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Related to Short Sales: Stop Loss Order

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 general public opinion is that short sales are impossible and they're not getting closed.
In this office in Summerlin, the Ballens started “The Ballen Group” and hired on other real estate agents to join them in servicing Summerlin short sales. Now The Ballen Group serves all types of home sales in the Las Vegas area.
The old objections about short sales driving down comparables and forcing lenders to absorb principal losses ring pretty hollow these days, but getting them done is still difficult because servicers are overwhelmed, and short sales need quick attention before offers go stale and buyers move on in exasperation.
When it comes to a short sale, you may think you're getting a great deal for a house.
The definition of "real estate brokerage" expressly excludes "providing" financing, but is assisting a seller to obtain a discharge from a mortgage lender in a short sale included within the permitted activities as a service of brokers or agents?
Anna and Michael Klinger, owners of the Klinger Group and Nevada Desert Realty listed this Henderson short sale listing in the second week of May 2015.
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.
He said he manages 20 locations, 17 of which he bought through short sales.
At present, investors can only carry out intraday trading via the offsetting of margin trading and short sales under the credit trading system.
Freddie Mac said it is delegating greater authority to all of its servicers to approve short sales for many borrowers who are not delinquent but face the following common financial hardships: divorce, a family death, long-term or permanent disability, employment transfers to different parts of the country, or Permanent Change of Station orders for members of the armed forces.
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."