short against the box

short against the box definition - business

short against the box

To sell an owned security short, usually in order to carry a profit on the security into the next tax year. Delivery may be made by using the owned shares or by purchasing new shares in the market. The Taxpayer Relief Act of 1997 largely eliminated shorting against the box as a means to defer a gain into a future year. Also called sell short against the box.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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