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71
Which of the following is NOT a reason why a short position in a stock is closed out?
A.The investor with the short position chooses to close out the position
B.The lender of the shares issues instructions to close out the position
C.The broker is no longer able to borrow shares from other clients
D.The investor does not maintain margins required on his/her margin account
A.The investor with the short position chooses to close out the position
B.The lender of the shares issues instructions to close out the position
C.The broker is no longer able to borrow shares from other clients
D.The investor does not maintain margins required on his/her margin account
Answer: B
A, C, and D are all reasons why the short position might be closed out. B is not. The lender of shares cannot issue instructions to close out the short position.
A, C, and D are all reasons why the short position might be closed out. B is not. The lender of shares cannot issue instructions to close out the short position.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015