Buying Short is a financial term used to explain the act of buying shares of stock that one already owns. A short buy is neither the purchase of additional shares of a company that one already invests in, nor a Buy-to-Cover. It is a purchase of the exact shares that are already held by the individual. A check of the certificate number is required for full confidence of a buy short transaction.
Based on financial theories advanced by the Black-Scholes model, Buying Short is a relatively recent development in the financial world. The goal is to increase Alpha by manipulating the Beta of one's own portfolio. Beta is exponentially reduced as one's own position does not change from a percentage basis however is increased from a purely empirical standpoint.
Created by noted expert Blayre Hiern, Esq., and put into use most often by investment partner Sir Marcus Peterson at B.B. Levin & Co.
“Beating The Market”
“Turning Capital Gains into Future Returns”
"HyperGlobal Portfolio Manipulation"