An order ticket to sell 100 shares of ABC short means that the seller will: A deliver shares that are owned on settlement date B

Question

4 years ago

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An order ticket to sell 100 shares of ABC short means that the seller will: A deliver shares that are owned on settlement date B

deliver shares that are borrowed on settlement date C not deliver shares on settlement date, but will deliver a due bill instead D not deliver shares on settlement date, but will deliver the shares on a future date

Social Studies

2 answers:

lapo4ka [179] · Answer 1 · 2021-12-27T04:05:26+03:00

Answer:

The answer to this question is B: Delivers shares that are borrowed on settlement date

Explanation:

As long as it is a short sale, it simply means it is the sales of borrowed shares. Selling 100 shares of ABC shorts simply implies that at some point, there was speculation of a possible drop in the prices of security, and thus the shares was borrowed from a broker to sell. The intention is to buyback the stock and return to the lender when the price drops.

Veseljchak [2.6K] · Answer 2 · 2021-12-27T06:31:10+03:00

Answer: Option B- Deliver shares that are borrowed on settlement day.

Explanation:

Selling 100 shares of ABC shorts is a short sale or short-selling. It is a situation when an investor borrows shares and sell them immediately hoping the price to fall so he can collect the difference and return back the share to the lender.