Which one of the following describes a short position?
A)Purchasing a security on margin
B)Selling a security that you originally purchased on margin
C)Loaning a security to your broker to cover a margin call
D)Having less equity than required in your margin account
E)Selling a security that you do not own

Question

Quizplus · Accepted Answer

A short position involves selling a security that you do not own in the hopes of buying it back at a lower price and profiting from the difference. This is also known as "short selling."

Which One of the Following Describes a Short Position