Sentences with phrase «borrows shares of a stock»

The investor borrows shares of a stock from someone else and sells them.

Any time you are borrowing shares of stock, you're doing it through margin, which means that you're paying interest on the transaction.

Not exact matches

The company finances construction by borrowing money from banks or investors or by issuing shares of stock.

In a model produced by New Street Research analyst Jonathan Chaplin on Friday, AT&T might pay $ 110 a share for Time Warner, with a split of 56 % in new stock and 44 % in cash raised from borrowing.

Upon liquidation, holders of such debt securities and preferred shares, if issued, and lenders with respect to other borrowings would receive a distribution of our available assets prior to the holders of our common stock.

W. L. Gore, the maker of Gore - Tex, and Publix Super Markets, which operates in the Southeast, are owned by employee stock ownership plans, wherein a workers» trust typically borrows money to buy shares that are paid out of company revenues.

Here's a hypothetical example: If computer tablet sales are projected to rise and desktop computer sales are expected to fall, a hedge fund manager may buy shares of a company that develops tablet devices and sell borrowed stock of a company that produces desktop computers.

The incident focused renewed attention on the practice of «shorting» stock — borrowing shares and selling them in the hopes of replacing them later after the price drops.

In virtually all stock market companies that have done ESOPs in the last 20 years, the company sets up the ESOP trust, which borrows money to finance the purchase of newly issued shares, and the trust pays the market price on that day for the shares.

If you believe the stock is over-valued then you can buy them in the future for a lower price to satisfy the borrowed number of shares to your broker.

Short sellers profit when the price of a stock (or another asset) falls; they accomplish this by borrowing shares, selling them, and buying them back later to return to the original owner.

This was exasperated recently when I was discussing the case of how most investors misunderstand how it can actually be good over the long - run to change a company's capitalization structure to replace equity with debt by borrowing funds on a long - term, low - cost, fixed - rate basis to repurchase stock, lowering the total count of outstanding shares.

Also known are the hedge funds, which pry most of the use of borrowed money and do highly speculative transactions, such as short sales, ie sales of stocks they do not own in the hope that the price falls and they can buy the shares later cheaper.

Dec 28 Indian shares were little changed on Thursday ahead of expiry of derivatives contracts and on lingering concerns over government borrowing exceeding target, but metals stocks such as Vedanta Ltd rose tracking global commodity prices.

Shares in franchise operator Retail Food Group may have been shielded from further falls because the amount of stock available to borrow and short the company is drying up.

Suppose you deposited $ 10,000 in a brokerage account and then borrowed another $ 10,000 to buy additional stocks, so you controlled $ 20,000 of shares.

You previously borrowed and sold 100 shares of stock ABC now trading at $ 50.

The advent of hedge funds has created a great demand for shorting stock, and there are concerns on the part of some with naked shorting, where one does not borrow the shares before they are sold.

In exchange for my borrowed stock, they provide cash collateral and pay me interest, which they describe as a sharing of the fees they charge the borrower of the stock.

If bad news is out, you might short the stock during the day by «borrowing» shares of the stock from the investment firm and then selling those borrowed shares.

A secondary benefit of a reverse split is that by reducing the shares outstanding and share float, the stock becomes harder to borrow, making it difficult for short sellers to short the stock.

There is no short selling (trading on borrowed stock), and you can't trade any stock with a market value of less than $ 10 / share until seven business days after your account application is approved.

From the chart, you can see that should we execute our strategy on a stock which runs from $ 20 / share to $ 227 7/8, we will have an open profit of $ 25,142, less the minimal amount of interest paid on the borrowed portion and commissions.

Of course, we must acknowledge the gap between a company's share price and its intrinsic value can sometimes be a long & difficult journey... But in terms of a key event / catalyst, this Sunday Times story (from March) is critical: «Tom Roche, the largest shareholder in NTR, has wrested back control of his 38 % stake in the investment firm after a receiver was appointed to the company that holds the stock... It is understood Roche had been seeking a substantial discount on the borrowings guaranteed by shares in NTR... Roche, who is the chairman of NTR, won a last - minute reprieve by writing a cheque for the full amount of the loans last Monday»Of course, we must acknowledge the gap between a company's share price and its intrinsic value can sometimes be a long & difficult journey... But in terms of a key event / catalyst, this Sunday Times story (from March) is critical: «Tom Roche, the largest shareholder in NTR, has wrested back control of his 38 % stake in the investment firm after a receiver was appointed to the company that holds the stock... It is understood Roche had been seeking a substantial discount on the borrowings guaranteed by shares in NTR... Roche, who is the chairman of NTR, won a last - minute reprieve by writing a cheque for the full amount of the loans last Monday»of a key event / catalyst, this Sunday Times story (from March) is critical: «Tom Roche, the largest shareholder in NTR, has wrested back control of his 38 % stake in the investment firm after a receiver was appointed to the company that holds the stock... It is understood Roche had been seeking a substantial discount on the borrowings guaranteed by shares in NTR... Roche, who is the chairman of NTR, won a last - minute reprieve by writing a cheque for the full amount of the loans last Monday»of his 38 % stake in the investment firm after a receiver was appointed to the company that holds the stock... It is understood Roche had been seeking a substantial discount on the borrowings guaranteed by shares in NTR... Roche, who is the chairman of NTR, won a last - minute reprieve by writing a cheque for the full amount of the loans last Monday»of NTR, won a last - minute reprieve by writing a cheque for the full amount of the loans last Monday»of the loans last Monday».

The skinny is this: Tribune the company borrows money, and gives it to the ESOP [employee stock ownership plan] to buy up the shares of Tribune.

The stock is heavily shorted with over 35 % of its available shares being borrowed and sold as a bet against the company.

Those betting against Facebook were the biggest single winners, gaining $ 471.3 million by borrowing shares of the company at a high price, and returning the stock when its value had fallen.