InvestorWords.com

The purchase of securities to close out a short stock position. To close a position, an option investor purchases the same number of shares that were sold short. If the price of the shares being purchased is below the price of the shares that were shorted, a profit could be realized (depending on trading fees).

• What are Stock Option Plans?
• The Warren Buffett Quality Stock Strategy
• An Overview of the Investment Options Suited for Educational Planning
• "Sell Covered Call" Option Investment Strategy
• Inflation, Interest Rates and the Fed
• Tax Issues Related to Your Business

Featured Advertiser