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Covered short: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "A short sale which you have “covered” by borrowing securities under a stock loan, or at least obtaining a “locate” from a stock lender. Compare with a...") |
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A [[short sale]] which you have “covered” by borrowing [[securities]] under a [[stock loan]], or at least obtaining a “[[locate]]” from a stock lender. Compare with a [[naked short]] where you sell outright, without getting in a borrow, in the hope you can acquire stock at a cheaper price | {{a|g|}}A [[short sale]] which you have “covered” by borrowing [[securities]] under a [[stock loan]], or at least obtaining a “[[locate]]” from a stock lender. Compare with a [[naked short]] where you sell outright, without getting in a borrow, in the hope you can acquire stock at a cheaper price by the time of settlement. [[Naked short]]s are disruptive, leading to settlement failures, and are generally frowned upon, and regulated against in the EU, by the lights of the [[EU Short Selling Regulations]]. | ||
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