You sell short 100 shares of Loser Co.at a market price of $45 per share.Your maximum possible loss is
A)$4,500.
B)unlimited.
C)zero.
D)$9,000.

Name: You sell short 100 shares of Loser Co.at a market price of $45 per share.Your maximum possible loss is A)$4,500. B)unlimited. C)zero. D)$9,000.
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Question

Quizplus · Accepted Answer

When you sell short, your loss potential is unlimited as the stock price could potentially go up infinitely. Therefore, option B is the correct answer.

You Sell Short 100 Shares of Loser Co