Shorting and Hedging Clause Samples
The "Shorting and Hedging" clause defines the rules and limitations regarding a party's ability to engage in short selling or hedging activities related to the subject of the agreement, such as securities or financial instruments. Typically, this clause specifies whether such activities are permitted, restricted, or require prior notification, and may outline the types of transactions considered as shorting or hedging. Its core practical function is to prevent conflicts of interest or market manipulation, ensuring that parties do not undermine the intent or value of the agreement through offsetting or speculative trades.
POPULAR SAMPLE Copied 1 times
Shorting and Hedging. Holder may not engage in any “shorting” or “hedging” transaction(s) in the Common Stock prior to conversion.
Shorting and Hedging. Holder may not engage in any “shorting” or “hedging” transaction(s) in the Common Stock at any time from the date of issuance of this note until the date on which this Note is paid or converted in full.
Shorting and Hedging. During the term of this Note the Holder, and its control persons, affiliates, principals and advisors, and any other person or entity acting by, through or in conjunction with any of them, shall not conduct or participate in any short selling or hedging of the Company’s common stock that is the subject of this Fixed Convertible Promissory Note.