• 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 closed out this position through an offsetting purchase; the opposite of a long position. Related: Long.
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| ||Accounts payable: Money owed by a company and payable within one year. It is listed on the Balance Sheet under Current Liabilities.Short term liabilities which reflect the amount owed vendors and suppliersMoney owed to suppliers.|
| ||Accounts receivable: Short term assets reflecting the amount owed by customers from the sale of product or services on creditMoney owed to a business for merchandise or services sold on an open account. It is found on the Balance Sheet under Current Assets. It is used in analyzing a company's liquidity.Money owed by customers.|
| ||Actual hedging: Is the risk management of a position when a hedger has a bona fide long or Short actual position and is involved in an offsetting transaction. This offset is usually in the derivatives market.|
| ||Assignment: The receipt of an exercise notice by an options writer that requires the writer to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price.Is the action for the seller of the option of acquiring the opposite position when an option is exercised. When a put is exercised, the writer receives a long position in securities or a long futures contract. When a call is exercised, the writer receives a Short position in the securities or a short futures contract.A voluntary liquidation procedure by which a firm's creditors pass the power to liquidate the firm's assets to an adjustment bureau, a trade association, or a third party, which is designated the assignee.|
| ||Average percent payout: The average of the percentage of a company's profits paid out in dividends to shareholders, typically calculated over the last five years. A high percent payout can be a danger sign. Recent payout figures higher than 50%, and higher than the average payout, may forewarn of a dividend cut. A dividend cut would likely cause the stock price to fall. Generally, the higher the payout ratio, the lower the expected growth rate for the company's EPS in the future.|
Sometimes, although the dividend payout is more than earnings, the company has strong cash flow and can cover the dividend in the Short term. However, a company paying out dividends in excess of earnings on a recurring basis is a risky investment.
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