Short selling a stock refers to
A)poor performance from purchasing an overvalued stock.
B)the new issuance of low-priced stocks by firms.
C)the new issuance of stocks by financially weak firms.
D)the borrowing of stock owned by someone else and selling it in the market.

Question

Quizplus · Accepted Answer

Short selling a stock involves borrowing shares that you do not own, selling them in the open market, and then buying them back later, hopefully at a lower price, to return to the lender. This strategy is used in anticipation of a stock's price declining.

Short Selling a Stock Refers to