Sentences with phrase «by borrowing stock»

The short seller achieves this by borrowing the stock from a broker, and immediately selling the stock at its current market price, with the sale proceeds credited to the short seller's margin account.
Even if their shorts need to be covered in a short time frame, they can extend that time frame by borrowing stock owned by their clients.

Not exact matches

Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
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.
It didn't work, as Chinese equity markets continued their descent on Monday, fueling worry because it is unclear how much of the country's bull market was funded by individuals borrowing to buy stocks.
«In troubled times like these, public companies turn to the private - equity markets because they don't have the same financing opportunities that they might otherwise possess, either by selling more stock in the secondary markets or by borrowing whatever money they need from banks,» he says.
There is no evidence that the policy, which encourages borrowing by keeping long - term interest rates low, has inflated dangerous bubbles in the stock market and residential real estate, she said.
Those who borrowed $ 100 in 1932 earned $ 901 by 1962 after investing in stocks and paying off the loan.
Typical sources of cash flow include cash raised by selling stocks and bonds or borrowing from banks.
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.
Short - sellers were placing bets on Tuesday that Snap would continue to fall, representing about 2.4 percent of trading volume in the stock by midday despite it being one of the most expensive to borrow on Wall Street.
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.
Former JPMorgan executive Blythe Masters has also been leading a collaborative effort between IBM and start - up Digital Asset Holdings to explore similar ledger technology, while December saw the Securities and Exchange Commission approve a stock plan created by online retailer Overstock, in which businesses can issue and borrow securities using blockchain.
We, on the other hand, view it with hope: because more than anything, the events of the past few days show that the truth is getting out — the truth that capital markets simply can not exist under the authoritarian rule of central planners, the truth that the stock market is a casino in which the best one can hope for a quick flip, and finally the truth that our entire socio - economic regime, whose existence has been predicated by borrowing from the uncreated wealth of the future, and where accumulated debt could be wiped out at the flip of a switch if things go wrong in the process obliterating the welfare of billions (of less than 1 % ers), is one big lie.
The stocks increased because of the QE (done by the FED not Obama) and the fact that Obama borrowed more than all previous presidents combined (over 10 trillion dollars).
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.
Corporate financial managers, for example, can raise their company's stock price simply by buying back shares from investors — financing the move by borrowing money.
It loads down economies with debt — and when debt service exceeds the surplus out of which to pay it, the central bank tries to «inflate its way out of debt» by creating enough new credit («money») to make real estate, stocks and bonds worth more — enough for debtors to borrow the interest due.
Prior to starting I prepared by borrowing some vegan recipe books from a friend and stocking up on all sorts of vitamins.
Adding that amount alone back into the stock would increase the total base by nearly 20 % and reduce the total amount of money borrowed under President Mahama as a percentage of accumulated stock since independence to about 23 %, which, high as it is, is not nearly as dramatic as 66 %.
He denied earlier comments by President Mahama that the Kufuor administration was responsible for 41 % of Ghana's $ 14billion external debt stock, adding that the Kufuor government did much more for Ghana though it borrowed little and had no oil revenues to spend.
By creating models in which an idealized trader borrowed money and bought stock, Black and Sholes derived a mathematical formula for the real value of the option.
Initially, librarians largely see e-book lending as a way to give more choices to existing members — and particularly to older members, who may want to access the service from home... It is possible that an exponential growth in e-book stocks would attract many more people, and would certainly be welcomed by those who already borrow e-books (95 % of them would increase their borrowing if a broader range of titles were available).
But if you aren't necessarily interested in borrowing from your broker in order to purchase securities (via margin) but you feel that you can afford to take on some risk to give your portfolio that extra nudge, then there's a way to leverage by simply relying on the right stock picks you make.
A short sale is the sale of a stock that an investor does not own or a sale which is consummated by the delivery of a stock borrowed by, or for the account of, the investor.
The investor later closes out the position by returning the borrowed security to the stock lender, typically by purchasing securities on the open market.
Stocks rise when the Fed lifts rates enough to contain inflation, but not by so much that the hikes suffocate borrowing and lending.
Borrowing money to buy stocks in your 20s and 30s can give you nearly twice as much money by the time you retire as a conventional investor.
It suggests that combining a stock portfolio that sits on the efficient frontier with a risk - free asset, the purchase of which is funded by borrowing, can actually increase returns beyond the efficient frontier.
For customers who borrow money from IB to purchase securities, IB is permitted by securities regulations to utilize for financing purposes up to 140 % of the loan value of the stock these customers hold with IB.
By properly segregating the customer's assets, if no money or stock is borrowed and no futures positions are held by the customer, then the customer's assets are available to be returned to the customer in the event of a default by or bankruptcy of the brokeBy properly segregating the customer's assets, if no money or stock is borrowed and no futures positions are held by the customer, then the customer's assets are available to be returned to the customer in the event of a default by or bankruptcy of the brokeby the customer, then the customer's assets are available to be returned to the customer in the event of a default by or bankruptcy of the brokeby or bankruptcy of the broker.
Part 2, also by Ross, explores the power of borrowing to invest (chiefly in real estate but you can also borrow to invest in quality - dividend paying stocks or indeed growth stocks).
In the early 1930s, investors who borrowed on margin to buy stocks eventually received margin calls and the selling that ensued crippled the savings of millions as the market crashed by over 80 % from its peak.
Typically you're expecting the stock to decline in value so you can make a profit by using shares bought later at a lower price to meet your obligation to restore the shares you borrowed when you made the short sale.
Margin trading facility helps you to trade in stocks by borrowing money from your stock broker.
The other thing is that in my mind you should be able to manage the risk of your leveraged investments by choosing conservative stocks or funds but most of all by limiting how much you borrow.
Every last one made their money by borrowing to invest in a company or portfolio of stocks (or inherited it from someone that did).
It's clear what the central bankers are hoping for: they want us all to keep borrowing and spending and by providing negative real interest rates on cash force us into riskier asset classes: notably stocks.
Many borrowers have done well over the past few years by using borrowed money to buy real estate and stocks.
Yes, a homeowner could leverage their equity by borrowing through a home equity loan to invest in stocks.
Black (1972) found that a pricing model in which borrowing is restricted was consistent with test results, reported by Jensen, Black, and Scholes (1972, p. 4), which indicated that high - beta stocks have negative alphas and low - beta stocks have positive alphas.
When you buy on margin, you borrow money from a broker to pool with your cash, buying more stock than you could by yourself.
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.
The fund pursues its goal by investing at least 80 % of its net assets (including borrowing, if any) in stocks of U.S. companies that are in the financial services sector.
When home prices decline, lenders have no way to compel homeowners to add more equity, like the margin calls employed by stock brokers when investors buy shares with borrowed money.
(Meaning that they have borrowed stock and sold it, in hopes that they can take advantage of a decline in the stock's price by replacing the borrowed stock later...
No doubt Ed will have more info on this, but the paper «Betting Against Beta» by Frazzini & Pedersen to which he refers above can be found at http://www.econ.yale.edu/~af227/pdf/Betting%20Against%20Beta%20-%20Frazzini%20and%20Pedersen.pdf The basic idea of the paper is that investors are apt to bid up high beta stocks because it's a way of leveraging their portfolio without actually borrowing to invest.
Investors who get a margin call are forced to come up with cash to pay back the money they borrowed, usually by selling more stock.
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