CFA CFA Level 3 short sale of an asset

short sale of an asset

  • This topic has 5 replies, 3 voices, and was last updated Jul-17 by RaviVooda.
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    • RaviVooda
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      In short sale of an asset, how does one earn money market rate of return? (Since we are shorting same number of stock, and net value is zero)

    • Zee Tan
      Keymaster
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      Hey @ravivooda – care to elaborate more? It’s difficult to follow your question…

    • RaviVooda
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      @zee, i should have explained it elaborately. I am actaully refering to ways to decrease the risk of large equity holding in a portfolio where one is short sale against the box. I noticed that I have written the topic wrong too.

      I have managed to clear the query myself. One can earn money on the money earned by doing the short sale.

    • RaviVooda
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      @zee, I am not sure how to close this question. can u please help. it is showing unanswered.

    • handullz
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      can you post the question? that might help some.

    • RaviVooda
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      can you post the question? that might help some.

      There is no question here. I was only asking members to clear my query on understanding how one would generate money market return using the method short sale against the box

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