Selling out. When a broker arbitrarily closes the account (in stocks or commodities) of a
customer for failure to provide margin or for some similar reason the operation is described as
selling out the customer.
On the London Stock Exchange when a seller of stock or shares does not receive from his buyer
the name of the party to whom the stock is to be transferred (see Name) by an appointed time he
is entitled to sell the stock out; that is, to instruct the official broker to make a fresh sale for cash.
The difference between the price at which the fresh sale is made and that of the original bargain,
tog-ether with the official broker's commission, is charged to the person responsible for the delay
in passing the name.