Which One of the Following Describes a Short Position

question 71

Multiple Choice

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

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Definitions:

Lumber Supply Company

A business entity that specializes in sourcing, distributing, and possibly manufacturing wood and wood products for various uses.

Contractual Relationship

A legal connection between parties established by an agreement defining their rights and obligations.

Material

Significant information or items necessary for the production of goods or the performance of tasks, often considered vital to the outcome of a process.

Section 427

This does not specify a context from which to derive a precise definition, as it might refer to specific sections of different laws or regulations depending on the context.