Cover

Cover 1. The ratio of undistributed profits transferred to a company’s reserves to the total dividend distributed 2. The ratio of interest on loans, secured and unsecured deposits and debentures to the earnings of a company. The ratio indicates the safety of the loans. 3. A bear who has sold short i.e., without actually buying the shares, in the hope of a all in prices, has to cover his position by buying and equal number of shares for delivery. In the event the prices have risen, the covering operation results in a loss.

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