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Investment

Vente à découvert

The sale of borrowed securities with the intention to buy them back at a lower price, profiting from price declines. Subject to regulatory restrictions and disclosure (SEC, MiFID II, CFA Institute).

Quick answer: The sale of borrowed securities with the intention to buy them back at a lower price, profiting from price declines. Subject to regulatory restrictions and disclosure (SEC, MiFID II, CFA Institute).

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Quick answer

The sale of borrowed securities with the intention to buy them back at a lower price, profiting from price declines. Subject to regulatory restrictions and disclosure (SEC, MiFID II, CFA Institute).

Why it matters

Vente à découvert matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Vente à découvert?

In this glossary, Vente à découvert refers to: The sale of borrowed securities with the intention to buy them back at a lower price, profiting from price declines. Subject to regulatory restrictions and disclosure (SEC, MiFID II, CFA Institute).

How is Vente à découvert used in finance?

In finance communication, this term appears in contexts such as: "La vente à découvert permet aux hedge funds de tirer profit de la baisse des cours, mais comporte des risques tels que les appels de marge et les interdictions réglementaires."

Why does Vente à découvert matter in finance?

Vente à découvert matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Vente à découvert?

Vente à découvert is mainly used by Financial Analysts, Bankers, and Traders.

What category does Vente à découvert belong to?

In this glossary, Vente à découvert is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

The sale of borrowed securities with the intention to buy them back at a lower price, profiting from price declines. Subject to regulatory restrictions and disclosure (SEC, MiFID II, CFA Institute).

Operational example

Short selling allows hedge funds to profit from declining stock prices but involves risks such as margin calls and regulatory bans.

Localized term

Vente à découvert

Localized example

La vente à découvert permet aux hedge funds de tirer profit de la baisse des cours, mais comporte des risques tels que les appels de marge et les interdictions réglementaires.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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