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synthetic short stock: A trading options strategy that is used to replicate a short stock position pay-off. It is carried out by buying a specific amount of "at the money" put (long put) and selling the same amount of "at the money" calls (short call) of the same underlying stock with the same expiration date. In synthetic short stock, the

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Briefly, EMH says that investing is overall (weighted by the standard deviation) rational; that the price of a stock at any given moment represents a rational evaluation of the known information that might bear on the future value of the company; and that share prices of equities are priced efficiently, which is to say that they represent

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