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Glossary Term: COVER

Definition(s) for COVER:


1. ) To buy back as a closing transaction an option that was initially written.

2. ) To close out an open position. This term is used most frequently to describe the purchase of an option or stock to close out an existing short position for either a profit or loss.

3. ) The total net profit a company has available for distribution as dividend, divided by the amount actually paid gives the number of times that the dividend is covered.


See Also:
BID-TO-COVER RATIO


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