Meaning REBATE: Negotiated return of a portion of the interest earned by the lender of stock to a short seller. When a stock is sold short, the seller borrows stock from an owner or custodian and delivers it to the buyer. The proceeds are delivered to the lender. The borrower, who is short, often wants a rebate of the interest earned on the proceeds under the lender's control, especially when the stock can be borrowed from many sources. Note: The seller must pay the lender any dividends paid out or, in the case of bonds, interest that accrues daily during the term of the loan
More terms such as Rebate in Dictionary R.
- Definition Risk Factor:
- Examples In arbitrage pricing theory or the multibeta capital asset pricing model, the set of common factors that impact returns, e.g., market return, interest rates, inflation, or industrial production rebate definition.
- Definition Real Estate Mortgage Investment Conduit (REMIC):
- Examples entity that can hold mortgages secured by any type of real property and can issue multiple classes of ownership interests to investors in the form of pass-through certificates, bonds, or other legal rebate explain.
- Definition Reinvestment Risk:
- Examples The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate rebate what is.
- Definition Real Estate Broker:
- Examples An intermediary who receives a commission for arranging and facilitating the sale of a property for a buyer or a seller rebate meaning.
- Definition Royalty:
- Examples Payment for the right to use intellectual property or natural resources rebate abbreviation.
