Take a position
To buy or sell short; that is, to have some amount that is owned or owed on an asset or derivative security. |
Similar financial terms
Hostile takeoverA tender offer which is made to the shareholders without the approval of the board of directors.
Takeover
General term referring to the transfer of control of a firm from one group of shareholder's to another group of shareholders.
Take-up fee
A fee paid to an underwriter in connection with an underwritten rights offering or an underwritten forced conversion as compensation for each share of common stock he underwriter obtains and must resell upon the exercise of rights or conversion of bonds.
Take-out
A cash surplus generated by the sale of one block of securities and the purchase of another, e.g. selling a block of bonds at 99 and buying another block at 95. Also, a bid made to a seller of a security that is designed (and generally agreed) to take him out of the market.
Take-or-pay contract
A contract that obligates the purchaser to take any product that is offered to it (and pay the cash purchase price) or pay a specified amount if it refuses to take the product.
Take
(a) A dealer or customer who agrees to buy at another dealer's offered price is said to take that offer. (b) Also, Euro bankers speak of taking deposits rather than buying money.
Stakeholders
All parties that have an interest, financial or otherwise, in a firm - stockholders, creditors, bondholders, employees, customers, management, the community, and the government.
Price takers
Individuals who respond to rates and prices by acting as though they have no influence on them.
Reverse Takeover (RTO)
A reverse takeover is one way of going public. A public company can take over another company by issuing a large number of shares to the shareholders of the target company. This may result in the new shareholders owning more shares than the original controlling shareholders - hence a change of control. Hence, this is referred to as a reverse takeover. Although the smaller company has technically taken over the larger one, the larger one's owners are now in charge.
Example: I have a pub ...
Overnight position
Trader's long or short position in a currency at the end of a trading day.
Short position
Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought to close out the transaction. This technique is used when an investor believes the stock price will go down.
Position diagram
Diagram showing the possible payoffs from a derivative investment.
Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into. The buyer of a commodity is said to have a long position and the seller of a commodity is said to have a short position .
Open position
A net long or short position whose value will change with a change in prices.
Modigliani and Miller Proposition II
A proposition by Modigliani and Miller which states that the cost of equity is a linear function of the firm's debt/equity-ratio.
Modigliani and Miller Proposition I
A proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition.
Long position
An options position where a person has executed one or more option trades where the net result is that they are an "owner" or holder of options (i. e. the number of contracts bought exceeds the number of contracts sold). Occurs when an individual owns securities. An owner of 1,000 shares of stock is said to be "Long the stock."
Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.
Changes in Financial Position
Sources of funds internally provided from operations that alter a company's cash flow position: depreciation, deferred taxes, other sources, and capital expenditures.
Clear a position
To eliminate a long or short position, leaving no ownership or obligation.
Composition
Voluntary arrangement to restructure a firm's debt, under which payment is reduced.
Position liquidation
The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering.
