Rebate
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 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. |
Related Definitions
Articles Of Interest
-
Options Basics Tutorial
Discover the world of options, from primary concepts to how options work and why you might use them. -
Ways To Slash Your Home Energy Bill
Upgrading household appliances to more energy-efficient models can slash your utilities bill. -
9 Ways To Save On Winter Bills
Winter heating bills can leave your finances in the cold. These tips will help warm things up. -
Short Selling Tutorial
Want to profit on declining stocks? This trading strategy does just that. -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks. -
Cash: A Call Option With No Expiration Date
Cash is generally regarded as a drag on investment returns, but sometimes it may be preferable to hold a substantial cash amount instead of investing it in other assets. This is because having ... -
Should You Add A Securities License To Your Qualifications?
Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it. -
Business Grads, Land Your Dream Job
Companies are in need of strategic candidates, not walking resumes. Find out how to set yourself apart from the pack and land the business career you've always wanted.
Free Annual Reports