short against the box

Short against the box

A short sale of a stock is where the seller actually owns the stock, but does not want to close out the position.

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short against the box

To sell an owned security short, usually in order to carry a profit on the security into the next tax year. Delivery may be made by using the owned shares or by purchasing new shares in the market. The Taxpayer Relief Act of 1997 largely eliminated shorting against the box as a means to defer a gain into a future year. Also called against the box, selling short against the box.