Question asks which is least accurate about short sales. One option states “Proceeds from short sales cannot be withdrawn from the account”… … what does this mean? It’s not he ‘least accurate’ statement.
when you short a stock you borrowed the stock and sold it. until you give back the stock, the “gains” are not yours yet.
So essentially you are forced to maintain any gains in an account as collateral against the position until is is returned? This is in addition to the margin you posted at the beginning. So the position, if it moves in your (short positions) favor, essentially gets over-collateralized?
you only need to keep the margin…proceeds are yours.
nopes, you dont get proceeds from short sale. the proceeds are kept with the broker as a collateral against your short sell. in addition you ahve to keep margin incase the stock goes above collateral value.
You can buy stock with them, but you can’t take them home.