Which of the Following Is Correct Concerning Short Sales of Stock

Multiple Choice

Which of the following is correct concerning short sales of stock at the time the short sale is made?

A) The taxpayer does not deliver to the purchaser the shares sold short.
B) The taxpayer delivers to the purchaser the shares sold short.
C) The taxpayer may already own the shares sold short.
D) The taxpayer always already owns the shares sold short.
E) None of these.