________ involves the sale of a security not owned by the investor at the time of sale.

Question

Quizplus · Accepted Answer

Short selling is the practice of selling a security that the investor does not own, with the hope of buying it back at a lower price to make a profit. This is done by borrowing the security from a broker or other investor and selling it in the market, with the understanding that it will be repurchased later to return to the lender. Short selling is a risky strategy because the potential losses are unlimited if the price of the security rises instead of falling.

________ Involves the Sale of a Security Not Owned by the Investor