The risk of a short sale is that the stock price
A)may decrease over time.
B)will remain the same.
C)may increase over time.
D)None of these are correct.

Question

Quizplus · Accepted Answer

In a short sale, the seller borrows a stock and sells it, hoping to buy it back later at a lower price. If the stock price increases instead, the seller faces the risk of buying it back at a higher price, leading to a loss.

The Risk of a Short Sale Is That the Stock