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

Question

Social Studies

Hughes

9 July, 12:19

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

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Bucky · Answer 1

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.