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TeachMeFinance.com Against the Box -- Short sale of a stock by a seller who is the owner of a Long Position in this very stock. The word box is used to denote the place where securities are kept in custody. Normally in a short sale the vendor does not hold the shares. However, in sale against the box, the seller is the owner of the shares, i.e. has a long position. The shares needed to cover the transaction may be borrowed from a broker. In against-the-box- dealings, the seller may not reveal his ownership of a long position; or it may not be possible to hand over the long shares in the desired time; or, before tax liabilities were diminished in the Taxpayer Relief Act of 1997, the seller may have been retaining his long position in order to avail of tax benefits relating to long-term capital gains. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.