Rebate: Definition, Types, Examples, Vs. Discount - Investopedia
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What Is a Rebate?Understanding RebatesRebates v Discounts and Reduced Interest RatesRebates in Securities TradingExample of a Rebate A short seller in the financial markets is betting that a stock or other asset will decline in price.Short sellers sell securities that they do not own. In order to do that, the trader must first borrow the stock from its owner and deliver it to the buyer. When the trader places a short sale trade, the stock must be delivered to the buyer on the trade settlement date . The goal of selling short is to profit from a price decline in a stock by buying it at a lower price af…Selling short exposes the seller to unlimited risk since the price of the shares that must be purchased can increase by an unlimited amount. That said, a trader can exit a short sale at any time to cap the risk.
A short seller in the financial markets is betting that a stock or other asset will decline in price.Short sellers sell securities that they do not own. In order to do that, the trader must first borrow the stock from its owner and deliver it to the buyer. When the trader places a short sale trade, the stock must be delivered to the buyer on the trade settlement date .
The goal of selling short is to profit from a price decline in a stock by buying it at a lower price af…Selling short exposes the seller to unlimited risk since the price of the shares that must be purchased can increase by an unlimited amount. That said, a trader can exit a short sale at any time to cap the risk.
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