Short Sale Mechanics
The traditional order of "buy low, sell high" is reversed by a short sale into this strategy
What is "sell high, buy low"?
Receipts issued by U.S. banks representing claims on foreign shares held in trust overseas.
What are American Depositary Receipts (ADRs)?
State-level securities regulations originating in Kansas in 1911 to prevent fraudulent sales.
What are Blue Sky Laws?
Which well-known comic book series features four characters named after Italian Renaissance artists?
TMNT
The initial collateral percentage or dollar deposit required by a broker to open a short position.
What is a margin requirement?
Aside from foreign exchanges, domestic investors buy international stocks on these domestic U.S. markets.
What are over-the-counter (OTC) markets?
Federal legislation that created the SEC and regulates secondary trading markets.
What is the Securities Exchange Act of 1934?
This sports arena is 200 feet long
Hockey rink
An order placed with a broker to cap an investor's upward price exposure on a short sale
What is a stop-loss purchase order?
Type of ADR created at the request of a foreign firm, which absorbs all administrative costs.
What is a sponsored ADR?
The mandatory SEC disclosure filed within 15 days of a major corporate change or material event.
What is Form 8-K?
In The Odyssey, what is the name of Odysseus's wife?
Penelope
A rapid price surge where short sellers panic and frantically buy back shares, pushing prices higher.
What is a short squeeze?
Type of ADR created by U.S. brokerages without company involvement, passing fees to shareholders.
What is an unsponsored ADR?
The mandatory SEC filing required when an individual or group acquires 5% or more of a public stock.
What is Form 13-D?
Which color appears on more national flags than any other color?
Red
The total net profit realized after short selling 100 shares at $50 and covering them at $40 per share.
What is $1,000?
The primary entity that holds foreign shares in trust overseas when an ADR is created.
What is a U.S. bank?
The maximum cash protection limit provided per account by SIPC in the event of broker failure.
What is $100,000?
How many major islands make up Hawaii?
8