Selling currently owned stock shares short. This strategy creates a neutral position in which the gains from the short sale and the loss from the decline in value of shares owned offset in the case that share prices decline, and is similar to purchasing a put option. The shares owned are considered a long position, and the term "box" refers to the older practice of placing shares held long-term in a safety deposit box. An example of this strategy would be if you expected your shares in XYZ to fall in value because a competitor just released a new and better product. Instead of selling your long position you could sell the stock short, with gains offsetting losses. While you wouldn't pay taxes on the sale of stock because you did not actually sell shares, you might have to pay taxes on the short sale if you entered into another hedging strategy within 60 days after you closed your previous shor position.
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The act of short selling securities that you already own. This results in a neutral position where your gains in a stock are equal to the losses. For example, if you ...
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May 16, 2011 ... Short selling against the box is a useful investment strategy that can help savvy money movers avoid losses and strengthen profits.
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same underlying security or in another security whose value is linked with the underlying security. Short sellers can also short sell against the box to defer capital ...
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Feb 10, 2012 ... Short Sell Against the Box Definition | Investopedia Let's say that you have a big gain on some shares of ABC. You think that ABC has reached ...
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Jan 28, 2002 ... Before 1950, an investor could short sell against the box and lock in a short-term capital gain that would then be taxed at the lower long-term ...