Rebate

(redirected from rebatable)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

Rebate

Negotiated return of a portion of the interest earned by the lender of stock to a short seller. When a stock is sold short, the seller borrows stock from an owner or custodian and delivers it to the buyer. The proceeds are delivered to the lender. The borrower, who is short, often wants a rebate of the interest earned on the proceeds under the lender's control, especially when the stock can be borrowed from many sources. Note: The seller must pay the lender any dividends paid out or, in the case of bonds, interest that accrues daily during the term of the loan.

Rebate

1. In an option, the amount that the holder is paid by the writer if the contract expires unexercised. It is usually a portion of the premium the holder originally paid.

2. In a short sale, the interest or dividends to which the lender of a security otherwise would be entitled but instead passes on to the borrower (who is the short seller).

rebate

(1) A refund. (2) A kickback. Kickbacks from settlement providers are illegal under the Real Estate Settlement and Procedures Act.

Rebate

Same as Negative Points.

References in periodicals archive ?
148 - 1T makes it clear that the 90% requirement operates so that, as of a rebate installment computation date, the issuer will have paid 90% of all rebatable arbitrage it has earned since the date of the bonds' issuance.
Computing/verifying The Amount Of Excess Earnings, If Any, Rebatable To The U.
The seizure has been made following a credible information about the involvement of M/s Al-Fareed Fabrics (Pvt), Ltd, Faisalabad and M/s Pacific Textile Mills, Karachi in the dubious exports of Polyester Cotton Bed Sheets, Polyester printed fabrics and cotton dyed terry towel / Polyester bathrobes, by misdeclaring its description, classification, value and weight in the guise of export of Valeur Fabrics and Cotton Viscose Fabrics which are high rebatable items.
Bonds issued in 1989 earned more rebatable arbitrage than 1990 bonds because interest rates on one-year Treasury securities in 1989 were higher than long-term rates in the municipal market and the Treasury market.