Rebate

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

rebate

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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Rebate

Same as Negative Points.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.