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    Question

    When traders first sell securities without first

    borrowing them or having possession of those securities, that is called:
    A Covered short selling Correct Answer Incorrect Answer
    B Naked short selling Correct Answer Incorrect Answer
    C Aggressive selling Correct Answer Incorrect Answer
    D Selling without recourse Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Naked short selling is the position taken by the seller without taking possession of the security. Naked short selling involves the short selling of shares that do not exist. Normally, the investor must first borrow shares before selling short

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