A perfect market does not allow the sale of borrowed securities.

Question

Quizplus · Accepted Answer

A perfect market does allow the sale of borrowed securities, through a process known as short selling. Short selling involves borrowing securities from a broker or other financial institution, selling them on the market, and then buying them back at a later time to return to the original lender. This is a common practice in many financial markets and can be used to speculate on falling prices or hedge against potential losses.

A Perfect Market Does Not Allow the Sale of Borrowed