A short-seller
A)anticipates that the price of the stock sold short will increase.
B)earns the difference between what was initially paid for the stock versus what the stock is later sold for.
C)makes a profit equal to the difference between the original selling price and the price paid for the stock, after subtracting any dividend payments made.
D)is essentially lending the stock to another investor and will ultimately receive that stock back from that investor.
E)None of these are correct.

Question

Quizplus · Accepted Answer

Short-sellers make a profit by selling borrowed stock at a high price and then buying it back at a lower price, with the profit being the difference between these prices minus any dividends they had to pay in the interim.

A Short-Seller