Shares for short transactions
A)are usually borrowed from other brokers.
B)are typically shares held by the short seller's broker in street name.
C)are borrowed from commercial banks.
D)B and C.
E)none of the above.

Question

Quizplus · Accepted Answer

When short selling, the shares are typically borrowed from the short seller's broker in street name. This means that the broker holds the shares on behalf of the short seller, and can lend them out to others for a fee. It is not common to borrow shares from commercial banks or other brokers, although this can occur in rare circumstances.

Shares for Short Transactions