Can exchange traded funds be sold short?
Yes. All exchange traded funds may be sold short, representing the sale of ‘borrowed’ shares in anticipation of lower prices. ETFs are exempt from the rule that requires shares to be sold short on a plus or zero plus tick (i.e., a sale price higher than the last different regular way sale in the security). Investors are required to make arrangements to borrow securities before selling short.
Yes. All exchange traded funds may be sold short, representing the sale of “borrowed” shares in anticipation of lower prices. ETFs are exempt from the rule that requires shares to be sold short on a plus or zero plus tick (i.e., a sale price higher than the last different regular way sale in the security). Investors are required to make arrangements to borrow securities before selling short.
Yes. All Exchange traded funds may be sold short, representing the sale of “borrowed” shares in anticipation of lower prices. Exchange traded funds are exempt from the rule that requires shares to be sold short on a plus or zero plus tick (i.e., a sale price higher than the last different regular way sale in the security). Investors are required to make arrangements to borrow securities before selling short.
