You have decided to borrow stock from your broker,sell it in the market,and then (you hope)replace the borrowed shares when the price drops in the future.This is an example of
A)borrowed selling.
B)selling short.
C)reverse hedging.
D)IOU trading.
E)none of the above.

Question

Quizplus · Accepted Answer

This is an example of selling short, which involves borrowing and selling a security in the market with the expectation of buying it back later at a lower price to make a profit. This strategy is also known as short selling or shorting.

You Have Decided to Borrow Stock from Your Broker,sell It