Rebate

Filed Under » ,
Dictionary Says

Definition of 'Rebate'

1. In a short-sale transaction, the portion of interest or dividends earned by the owner (lender) of shares that are paid to the short seller (borrower) of the shares.

2. In an options transaction, the amount paid to the holder of the option if the option expires worthless.
Investopedia Says

Investopedia explains 'Rebate'

1. The lender and borrower usually negotiate the rate at which the short seller will be compensated.

2. The rebate is pre-negotiated and is usually a portion of the premium paid by the option holder.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Kickback

    The payment of ...
  2. Rebate Barrier Option

    A financial ...
  3. Short Sale

    A market ...
  4. Short Selling

    The selling of a ...
  5. Bribe

    An illegal ...
  6. Volatility

    1. A statistical ...
  7. Risk Capital

    Investment funds ...
  8. Price Risk

    The risk of a ...
  9. Cum Rights

    A shareholder of ...
  10. Security

    A financial ...

Articles Of Interest

  1. Short Selling Tutorial

    Want to profit on declining stocks? This trading strategy does just that.
  2. Ways To Slash Your Home Energy Bill

    Upgrading household appliances to more energy-efficient models can slash your utilities bill.
  3. Options Basics Tutorial

    Discover the world of options, from primary concepts to how options work and why you might use them.
  4. 9 Ways To Save On Winter Bills

    Winter heating bills can leave your finances in the cold. These tips will help warm things up.
  5. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  6. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  7. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  8. Finding Your Investing Comfort Zone

    Choosing the right investments for you is the best way to feel comfortable with your portfolio.
  9. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  10. Simplify Your Portfolio

    Faced with an overabundance of choices, many investors forget to stick to the basics.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center