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2 years ago

the sale of shares not owned by the investor but borrowed through a broker and later purchased to replace the loan is called a

1 answer:

5 0

The sale of shares not owned by the investor but borrowed through a broker and later purchased to replace the loan is called a short sale.

What is loan?

A loan is any sum of money, a piece of property, or other tangible item that is given to another party with the understanding that it will be paid back, plus interest, at a later date.

The term “short sale” refers to selling the stock. The share rate is down, so the owner is selling, and the other person is purchasing the shares. The share rate will increase the sale rate in the future. They buy, and the conversion into a loan is known as a short sale.

As a result, the short sale the shares are the converted into the loans.

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