Gains will result from a short sale if
A)stock prices rise
B)stock prices fall
C)stock prices remain stable
D)The answer is indeterminate.

Question

Quizplus · Accepted Answer

In a short sale, the seller borrows shares and sells them with the hope that the stock price will fall. If the price falls, the seller can buy back the shares at a lower price, return them to the lender, and profit from the difference.

Gains Will Result from a Short Sale If