Question

All of the following are true about selling a listed security "short against the box" EXCEPT: (A) It may be done to arbitrage (B) It may be done to lock in a profit. (C) It is done to postpone taxes to a future date. (D) It can be done to hedge a long stock position.

Answer 1

C. It is done to postpone taxes to a future date

Step-by-step explanation:

Selling short against the box can no longer be done to defer tax to the next tax period