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Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. | Buying in has several meanings: Image File history File links This is a lossless scalable vector image. ...
Image File history File links Question_book-3. ...
- In the securities market it refers to a process by which the buyer of securities, whose seller fails to deliver the securities contracted for, can 'buy in' the securities from a third party with the defaulting seller to make good.
- In poker it signifies the up-front payment required to participate in a given game or tournament.
- In management and decision making, buy-in (as a verb or noun) signifies the commitment of interested or affected parties to a decision (often called stakeholders) to 'buy in' to the decision, that is, to agree to give it support, often by having been involved in its formulation.
Securities are tradeable interests representing financial value. ...
A contract is a legally binding exchange of promises or agreement between parties that the law will enforce. ...
For other uses, see Management (disambiguation). ...
Decision making is the cognitive process of selecting a course of action from among multiple alternatives. ...
It has been suggested that Verbal agreement be merged into this article or section. ...
In linguistics, a noun or noun substantive is a lexical category which is defined in terms of how its members combine with other grammatical kinds of expressions. ...
The term stakeholder has two distinct uses in the English language: The traditional usage, in law and notably gambling, a third party who temporarily holds money or property while its owner is still being determined. ...
Securities market use
On the English stock exchange, a transaction by which, if a member has sold securities which he fails to deliver on settling day, or any of the succeeding ten days following the settlement, the buyer may give instructions to a stock exchange official to "buy in" the stock required. The official announces the quantity of stock, and the purpose for which he requires it, and whoever sells the stock must be prepared to deliver it immediately. The original seller has to pay the difference between the two prices, if the latter is higher than the original contract price. A similar practice, termed "selling out," prevails when a purchaser fails to take up his securities. For other uses, see England (disambiguation). ...
Securities are tradeable interests representing financial value. ...
Selling out refers to the compromising of ones integrity, morality and principles in exchange for money, success or other personal gain. ...
The practise is not limited to the UK Stock Exchange but is found in various forms on most stock exchanges. The rules vary according to the local regulations, and the party which fails to deliver is usually penalised and may even be suspended.
Buy-in rule on the German equity market Trade date (TD) = x Settlement date (SD)= x + 2 trading days Image File history File links Broom_icon. ...
If you are short a stock, buy-in can occur if trade has not settled on SD+5.
The market is not obliged to send a buy in notice.
You have until 1:15 p.m. German time to settle the trade on TD +7 (SD +5).
If you did not manage to deliver the shares at 1:15 p.m. on SD+5 the 'market' tries to buy back your short sale (buy in). The buy-in occurs on an internet based auction between 4 p.m. and 4:30 p.m. (and not on the exchange) Price limit is set at + and - 200% of the stocks previous day close.
A buy-in is successful if the market manages to find the total size to cover the short sale (it is a matter of size not price). The cost for the short seller can be very high but will remain successful for the market regulators.
A buy-in is unsuccessful if the market does not manage to find the total size to cover the short sale. if unsuccessful, the next possible buy in date is ST+ 10 days.
BUY IN ON THE GERMAN STOCK MARKET OCCURS RELATIVELY RARELY
Buy-in rule on the Spanish equity market Trade date (TD) = x Settlement date (SD) = x + 3 trading days / example: TD: Thursday 23 feb 06 / SD= Tuesday 28 feb 06 Image File history File links Broom_icon. ...
TD + 4 (SD +1): if trade has not been delivered, 10 basis point fine on the total amount of the short sale
TD + 5 (SD +2): if trade has not settled by 4 p.m. local time, the market automatically 'buys-you-in'
BUY IN ON THE SPANISH STOCK MARKET OCCURS REGULARLY
Buy-in rule on the Singapore equity market The following apply to the Singapore Exchange(SGX) mainboard and Sesdaq. Image File history File links Broom_icon. ...
Singapore Exchange (SGX) is the stock exchange in Singapore. ...
Trade Date (TD) : Date the shares are sold.
- Shares must be available at the end of TD (i.e. you have to cover in the same day).
Settlement Date (SD) (aka Due date) : * Trade date (TD) + 3 - Date the shares are debited from your account.
- If shares were not available on TD (see above), SGX will automatically buy in for you.
- The initial price is set at 2 tick above T close or market price at T+3, whichever is higher. The price will be continually increased until a seller is found.
Note : Any long position after T will be a new contract. It cannot be used to cover your short position.
Alternatives to short selling available on the SGX :
- Borrow the share and proceed to sell a stock.
- Buy a put warrant or short a call warrant.
- Short a CFD.
- Sell a Single Stock Future (SSF) in the futures market.
Poker and gaming "Buying in" regarding poker tournaments is the process of entering a poker tournament that requires an up-front payment. The size of the payment, otherwise known as the "Buy In", determines the total winning prize pool and also contains a fee, otherwise known as the rake, that is paid to the house. For the domestic fireplace tool, see fireplace poker. ...
The rake is the scaled commission fee taken by a casino operating a poker game. ...
For example a 50 person capacity tournament could cost $55 to enter per player. In poker terms this could equate to $50+5, meaning $50 goes to the prize pool to pay the eventual winners and $5 (10%) goes to the house for hosting the tournament. In this example the prize pool would contain $2500 and the house would take a total of $250 (also 10%).
Management The process of lobbying for support for part of the influential group before suggesting an idea, arguing a case or submitting a report.
In the sports world, buying in is a significant aspect of players/particpants accepting goals and direction from a coach, leader or program. "Buying in" becomes synonymous with commitment and dedication. In the Spring of 2007, two film makers, Tim Breitbach(Dopamine) and Ralph Barhydt, started producing a film entitled, "Buying In" that explores the social issues of buying in based on the success of the boys' and girls' high school basketball teams at The Branson School, in Ross, California, who each won the State Championship in their division in 2007.
References - This article incorporates text from the Encyclopædia Britannica Eleventh Edition, a publication now in the public domain.
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