If a market participant believes that a stock price is irrationally high,they may try to borrow stock from brokers to sell in the market and then make a profit by buying the stock back again after the stock falls in price. This practice is called
A)short selling.
B)double dealing.
C)undermining.
D)long marketing.

Question

Quizplus · Accepted Answer

This scenario is describing the practice of short selling, where an individual borrows shares from a broker and sells them with the expectation that the price will go down. Once the price does go down, they buy the shares back at a lower price and return them to the broker, keeping the profit.

If a Market Participant Believes That a Stock Price Is